Clean Tech Handbook for Asia Pacific May 2010
Asia Pacific Clean Tech Handbook 26-Apr-10 Table of Contents FOREWORD ...... 16 1 INTRODUCTION...... 19
1.1 WHAT IS CLEAN TECHNOLOGY? ...... 19
1.2 WHY CLEAN TECHNOLOGY IN ASIA PACIFIC? ...... 19
1.3 FACTORS DRIVING THE CLEAN TECH MARKET IN ASIA PACIFIC ...... 20
1.4 KEY CHALLENGES FOR THE CLEAN TECH MARKET IN ASIA PACIFIC ...... 20
1.5 WHO WOULD BE INTERESTED IN THIS REPORT? ...... 21
1.6 STRUCTURE OF THE HANDBOOK ...... 21
PART A – COUNTRY REVIEW...... 22 2 COUNTRY OVERVIEW...... 23
2.1 BACKGROUND ...... 23
2.1.1 North Asian Countries...... 23
2.1.2 South Asia ...... 23
2.1.3 South East Asia ...... 23
2.1.4 Pacific...... 24
2.1.5 Key Drivers for Clean Tehnology ...... 24
2.2 MARKET SIZE & ENERGY MIX ...... 25
2.3 POLICY AND RENEWABLE REGULATION ...... 26
2.4 TARGETS & INCENTIVES ...... 27
2.4.1 Feed in Tariffs (FiT)...... 27
2.4.2 Baseload Power Generation ...... 29
2.4.3 Clean Development Mechanism Projects (CDM) ...... 33
2.5 RESEARCH & DEVELOPMENT ...... 34
2.6 FINANCING...... 36
2.6.1 Public Funding...... 36
2.6.2 Private Funding...... 36
2.6.3 Private Equity/Venture Capital ...... 36
Asia Pacific Clean Tech Handbook 2 of 348 26-Apr-10 2.6.4 Public Companies...... 37
2.6.5 Project Financing ...... 38
3 COUNTRY, BY ENERGY SECTOR...... 40
3.1 SUMMARY ...... 40
3.2 CHINA...... 40
3.2.1 Background...... 40
3.2.2 Market Size and Energy Mix ...... 40
3.2.3 Government Agencies...... 41
3.2.4 Clean Technology Regulation...... 42
3.2.5 Renewable Targets & Incentives...... 43
3.2.6 Research & Development...... 46
3.2.7 Financing...... 46
3.3 JAPAN ...... 47
3.3.1 Background...... 47
3.3.2 Market Size & Energy Mix...... 47
3.3.3 Government Agencies...... 49
3.3.4 Clean Technology Regulation...... 50
3.3.5 Renewable Targets & Incentives...... 51
3.3.6 Research & Development...... 53
3.3.7 Financing...... 54
3.4 SOUTH KOREA ...... 55
3.4.1 Background...... 55
3.4.2 Market Size & Energy Mix...... 55
3.4.3 Government Agencies...... 56
3.4.4 Renewable Regulation ...... 56
3.4.5 Renewable Targets & Incentives...... 56
3.4.6 Research & Development...... 57
Asia Pacific Clean Tech Handbook 3 of 348 26-Apr-10 3.4.7 Financing...... 58
3.5 TAIWAN ...... 60
3.5.1 Background...... 60
3.5.2 Market Size & Energy Mix...... 60
3.5.3 Government Agencies...... 61
3.5.4 Clean Technology Regulation...... 62
3.5.5 Renewable Targets & Incentives...... 63
3.5.6 Research & Development...... 63
3.5.7 Financing...... 63
3.6 HONG KONG ...... 64
3.6.1 Background...... 64
3.6.2 Market Size & Energy Mix...... 64
3.6.3 Government Agencies...... 64
3.6.4 Clean Technology Regulations ...... 64
3.6.5 Renewable Targets & Incentives...... 65
3.6.6 Research & Development...... 65
3.6.7 Financing...... 65
3.7 INDIA ...... 66
3.7.1 Background...... 66
3.7.2 Market Size and Energy Mix ...... 66
3.7.3 Government Agencies...... 67
3.7.4 Renewable Regulation ...... 68
3.7.5 Renewable Targets & Incentives...... 70
3.7.6 Research & Development...... 72
3.7.7 Financing...... 72
3.8 SINGAPORE ...... 74
3.8.1 Background...... 74
Asia Pacific Clean Tech Handbook 4 of 348 26-Apr-10 3.8.2 Market Size & Energy Mix...... 75
3.8.3 Government Agencies...... 75
3.8.4 Clean Technology Regulations ...... 75
3.8.5 Renewable Targets & Incentives...... 76
3.8.6 Research & Development...... 79
3.7.7 Financing...... 79
3.9 INDONESIA...... 80
3.9.1 Background...... 80
3.9.2 Market Size & Energy Mix...... 80
3.9.3 Government Agencies...... 80
3.9.4 Clean Technology Regulation...... 81
3.9.5 Renewable Targets ...... 81
3.9.6 Research & Development...... 82
3.9.7 Financing...... 82
3.10 MALAYSIA...... 83
3.10.1 Background...... 83
3.10.2 Market Size & Energy Mix...... 83
3.10.3 Government Agencies...... 84
3.10.4 Clean Technology Regulation...... 84
3.10.5 Renewable Targets & Incentives...... 85
3.10.6 Research & Development...... 86
3.10.7 Financing...... 86
3.11 PHILIPPINES...... 87
3.11.1 Background...... 87
3.11.2 Market Size & Energy Mix...... 87
3.11.3 Government Agencies...... 88
3.11.4 Renewable Regulation ...... 89
Asia Pacific Clean Tech Handbook 5 of 348 26-Apr-10 3.11.5 Renewable Targets & Incentives...... 90
3.11.6 Research & Development...... 91
3.11.7 Financing...... 91
3.12 THAILAND ...... 92
3.12.1 Background...... 92
3.12.2 Market Size & Energy Mix...... 92
3.12.3 Government Agencies...... 93
3.12.4 Renewable Regulations...... 93
3.12.5 Renewable Targets & Incentives...... 94
3.12.6 Research & Development...... 96
3.12.7 Financing...... 96
3.13 AUSTRALIA...... 97
3.13.1 Background...... 97
3.13.2 Market Size & Energy Mix...... 98
3.13.3 Government Agencies...... 99
3.13.3 Clean Technology Regulation...... 100
3.13.4 Renewable Targets & Incentives...... 101
3.13.6 Research & Development...... 104
3.13.7 Financing...... 104
3.14 NEW ZEALAND...... 106
3.14.1 Background...... 106
3.14.2 Market Size & Energy Mix...... 106
3.14.3 Government Agencies...... 107
3.14.4 Renewable Regulation ...... 107
3.14.5 Renewable Targets & Incentives ...... 108
3.14.6 Research & Development...... 108
3.14.7 Financing...... 109
Asia Pacific Clean Tech Handbook 6 of 348 26-Apr-10 4 REGIONAL COMPARISON ...... 110
4.1 NORTH ASIA...... 110
4.2 SOUTH ASIA ...... 110
4.3 SOUTH EAST ASIA...... 111
4.4 PACIFIC ...... 111
4.5 KEY CLEAN TECHNOLOGY SECTORS ...... 111
PART B – CLEAN TECHNOLOGY SECTOR REVIEW...... 113 5 ENERGY SECTOR OVERVIEW...... 114
5.1 MARKET MAP OF CLEAN TECHNOLOGY ...... 114
5.2 ENERGY SUPPLY ...... 115
5.2.1 Renewable Energy ...... 115
5.2.2 Power Generation and Distribution ...... 118
5.2.3 Conventional Energy ...... 119
5.3 ENERGY USAGE...... 120
5.3.1 Building (Residential and Commercial) ...... 120
5.3.2 Industry...... 121
5.3.3 Transportation ...... 121
5.4 OTHER POLLUTANTS ...... 121
5.4.1 Wastewater ...... 121
5.5 WASTE...... 122
5.6 SERVICE & SUPPORT ...... 122
5.6.1 Private Sector Funding...... 122
5.6.2 Private Sector Services & Support...... 122
5.6.3 Government Agencies...... 123
5.6.4 Universities ...... 123
6 ENERGY SECTOR, BY COUNTRY...... 124
6.1 WIND ...... 124
6.1.1 Background...... 124
Asia Pacific Clean Tech Handbook 7 of 348 26-Apr-10 6.1.2 Targets & Incentives ...... 125
6.1.3 Wind Supply Chain ...... 125
6.1.4 Research & Development...... 126
6.1.5 China...... 128
6.1.6 Japan...... 132
6.1.7 South Korea...... 134
6.1.8 Taiwan ...... 135
6.1.9 India ...... 135
6.1.10 Singapore...... 136
6.1.11 Indonesia...... 137
6.1.12 Australia...... 139
6.1.13 New Zealand ...... 140
6.1.14 Summary of Companies in the Wind Sector...... 143
6.2 SOLAR...... 144
6.2.1 Background...... 144
6.2.2 Targets and Incentives...... 145
6.2.3 PV Supply Chain ...... 147
6.2.4 Research & Development...... 149
6.2.5 China...... 151
6.2.6 Japan...... 154
6.2.7 South Korea...... 158
6.2.8 Taiwan ...... 159
6.2.9 India ...... 161
6.2.10 Singapore...... 163
6.2.11 Indonesia...... 163
6.2.12 Malaysia ...... 163
6.2.13 Thailand ...... 164
Asia Pacific Clean Tech Handbook 8 of 348 26-Apr-10 6.2.14 Philippines...... 165
6.2.15 Australia...... 165
6.2.16 New Zealand ...... 166
6.2.17 Summary of Companies in PV Sector ...... 167
6.3 BIOFUEL ...... 170
6.3.1 Background...... 170
6.3.2 Targets & Incentives ...... 171
6.3.3 Biofuel Supply Chain ...... 173
6.3.4 China...... 174
6.3.5 Japan...... 179
6.3.6 South Korea...... 181
6.3.7 Taiwan ...... 183
6.3.8 India ...... 184
3.3.11 Singapore...... 185
6.3.12 Indonesia...... 187
6.3.13 Malaysia ...... 189
6.3.14 Thailand ...... 190
6.3.15 Philippines...... 193
6.3.16 Australia...... 195
6.3.17 New Zealand ...... 196
6.3.18 Summary of Companies in Biofuel Sector (to add Updated Table)...... 197
6.4 BIOMASS...... 198
6.4.1 Background...... 198
6.4.2 Targets & Incentives ...... 198
6.4.3 Biomass Supply Chain ...... 201
6.4.4 Research & Development...... 204
6.4.5 China...... 204
Asia Pacific Clean Tech Handbook 9 of 348 26-Apr-10 6.4.6 Japan...... 205
6.4.7 South Korea...... 206
6.4.8 Taiwan ...... 208
6.4.9 India ...... 209
6.4.10 Singapore...... 211
6.4.11 Indonesia...... 212
6.4.12 Malaysia ...... 212
6.4.13 Thailand ...... 212
6.4.14 Philippines...... 214
6.4.15 Australia...... 215
6.4.16 New Zealand ...... 218
6.4.17 Summary of Companies in Biomass Sector...... 219
6.5 HYDRO...... 220
6.5.1 Background...... 220
6.5.2 Targets & Incentives ...... 220
6.5.3 Hydroelectric Power Process...... 221
6.5.4 China...... 222
6.5.5 Japan...... 223
6.5.6 South Korea...... 224
6.5.7 Taiwan ...... 224
6.5.8 India ...... 224
6.5.9 Singapore...... 225
6.5.10 Indonesia...... 226
6.5.11 Malaysia ...... 227
6.5.12 Thailand ...... 227
6.5.13 Philippines...... 228
6.5.14 Australia...... 229
Asia Pacific Clean Tech Handbook 10 of 348 26-Apr-10 6.5.15 New Zealand ...... 229
6.5.16 Summary of Companies in Hydro Sector...... 230
6.6 WAVE & TIDAL TECHNOLOGY ...... 231
6.6.1 Background...... 231
6.6.2 Targets & Incentives ...... 231
6.6.3 Wave & Tidal Process...... 231
6.6.4 Research & Development...... 232
6.6.5 China...... 234
6.6.6 Japan...... 235
6.6.7 South Korea...... 236
6.6.8 Taiwan ...... 237
6.6.9 India ...... 237
6.6.10 Philippines...... 238
6.6.11 Indonesia...... 239
6.6.12 Thailand ...... 239
6.6.13 Malaysia ...... 239
6.6.10 Australia...... 240
6.6.11 New Zealand ...... 242
6.6.12 Summary of Companies involved in Wave/Tidal Technology ...... 243
6.7 GEOTHERMAL...... 244
6.7.1 Background...... 244
6.7.2 Targets & Incentives ...... 244
6.7.3 Geothermal Process and Technologies ...... 244
6.7.4 China...... 245
6.7.5 Japan...... 246
6.7.6 South Korea...... 247
6.7.7 Taiwan ...... 248
Asia Pacific Clean Tech Handbook 11 of 348 26-Apr-10 6.7.8 India ...... 248
6.7.9 Indonesia...... 248
6.7.10 Malaysia ...... 249
6.7.11 Philippines...... 249
6.7.12 Thailand ...... 250
6.7.13 Australia...... 251
6.7.14 New Zealand ...... 254
6.7.15 Summary of Companies involved in Geothermal...... 256
6.8 SMART GRID ...... 257
6.8.1 Background...... 257
6.8.2 Targets & Incentives ...... 257
6.8.3 Smart Grid Process...... 258
6.8.4 China...... 260
6.8.5 Japan...... 262
6.8.6 South Korea...... 265
6.8.7 Taiwan ...... 265
6.8.8 India ...... 267
6.8.9 Singapore...... 267
6.8.10 Indonesia...... 267
6.8.11 Malaysia ...... 268
6.8.12 Philippines...... 268
6.8.13 Thailand ...... 269
6.8.14 Australia...... 269
6.8.15 New Zealand ...... 270
6.8.16 Summary of Companies involved in Smart Grid...... 271
6.9 CARBON CAPTURE AND STORAGE ...... 272
6.9.1 Background...... 272
Asia Pacific Clean Tech Handbook 12 of 348 26-Apr-10 6.9.2 Targets & Incentives ...... 272
6.9.3 CCS Process ...... 275
6.9.4 China...... 276
6.9.5 Japan...... 276
6.9.6 South Korea...... 277
6.9.7 Taiwan ...... 277
6.9.8 India ...... 277
6.9.9 Singapore...... 278
6.9.10 Indonesia...... 278
6.9.11 Malaysia ...... 279
6.9.12 Philippines...... 279
6.9.13 Thailand ...... 279
6.9.14 Australia...... 279
6.9.15 New Zealand ...... 285
6.9.16 Summary of Companies ...... 285
6.10 NUCLEAR ...... 286
6.10.1 Background...... 286
6.10.2 Targets & Incentives ...... 287
6.10.3 Nuclear Process and Supply Chain ...... 288
6.10.4 China...... 293
6.10.5 Japan...... 297
6.10.6 South Korea...... 300
6.10.7 Taiwan ...... 302
6.10.8 India ...... 302
6.10.9 Singapore...... 305
6.10.10 Indonesia...... 305
6.10.11 Malaysia ...... 306
Asia Pacific Clean Tech Handbook 13 of 348 26-Apr-10 6.10.12 Philippines...... 306
6.10.13 Thailand ...... 307
6.10.14 Australia...... 307
6.10.15 New Zealand ...... 308
6.10.16 Summary of Companies ...... 309
6.11 WASTEWATER ...... 309
6.11.1 Background...... 309
6.11.2 Targets & Incentives ...... 309
6.11.3 Wastewater Process ...... 310
6.11.4 Research & Development...... 311
6.11.5 China...... 312
6.11.6 Japan...... 316
6.11.7 South Korea...... 318
6.11.8 Taiwan ...... 319
6.11.9 India ...... 319
6.11.10 Singapore...... 320
6.11.11 Indonesia...... 321
6.11.12 Malaysia ...... 322
6.11.13 Philippines...... 322
6.11.14 Thailand ...... 323
6.11.15 Australia...... 324
6.11.16 New Zealand ...... 325
6.11.17 Summary of Companies ...... 326
6.12 WASTE...... 326
6.12.1 Background...... 326
6.12.2 Targets & Incentives ...... 326
6.12.3 Waste Process...... 328
Asia Pacific Clean Tech Handbook 14 of 348 26-Apr-10 6.12.4 China...... 329
6.12.5 Japan...... 333
6.12.6 South Korea...... 335
6.12.7 Taiwan ...... 336
6.12.8 India ...... 337
6.12.9 Singapore...... 338
6.12.10 Indonesia...... 338
6.12.11 Malaysia ...... 339
6.12.12 Philippines...... 340
6.12.13 Thailand ...... 340
6.12.14 Australia...... 341
6.12.15 New Zealand ...... 342
6.12.16 Summary of Companies ...... 343
7 SUMMARY OF KEY OPPORTUNITIES...... 344
7.1 INTEGRATION OF GOVERNMENT POLICY AND INDUSTRY ...... 344
7.2 INFRASTRUCTURE ...... 345
7.3 COMMODITISED SECTORS ...... 346
7.4 INNOVATION ...... 347
7.5 CONCLUSIONS ...... 347
Asia Pacific Clean Tech Handbook 15 of 348 26-Apr-10 Foreword
This Handbook was initially producd to assess the growth and opportunities in the Clean Technology space in Asia Pacific. The pace and scale at which countries in the Asia Pacific Region such as China and India have set targets, aligned policy with indutsry and then followed through with implementation is breathtaking. This version of the Handbook is focused on renewable energy and power generation and is meant to serve as a reference guideand provide an overview of the region by country and sector.
The author welcomes any comments or suggestions for future editions.
Simon Wilson [email protected]
I would like to thank the following contributors:
Editor Conan Hales ([email protected])
Sector Review Carbon Markets David Fogarty Clean Technology Leonora Walet Project Finance Minerva Lau Patent Filing Sue Cullen and Mark Garlinghouse
Country Profiles Japan Risa Maeda, Yoko Inoue South Korea Cho Mee Young HK, Taiwan, China Leonora Walet India Ratnajyoti Dutta / Prashant Mehra Singapore David Fogarty Indonesia Sunanda Creagh Malaysia Niki Koswanage Philippines Minerva Lau Thailand Piloy Tenkate Australia, NZ Bruce Hextall
About the Author Simon Wilson is the Head of Commodities & Energy in Asia Pacific for the Markets Division of Thomson Reuters. Prior to this position, Simon worked in the ventures group in London, looking at early stage ventures in Commodities & Energy business. Prior to Reuters he worked at Environmental Resource Management, a specialist environmental consultancy, working on key environmental government and multinational studies in the Asia Pacific region.
Asia Pacific Clean Tech Handbook 16 of 348 26-Apr-10
EXECUTIVE SUMMARY
The Asia Pacific Region (APR) will be the largest Energy Market and Clean Technology Market in the world, by 2030. According to the EIA, the APR will consume over 250 Quadrillion BTU by 2030 and generate 15,000 TWh in power by 2030.
Countries within the APR are already gearing up for the impact of Climate Change by setting aggressive renewable targets. Clean Technology is seen as a growth industry that generates jobs, while reducing carbon emissions and energy security in the process. What is surprising is the speed of change and the level of investment set aside by governments to ensure that countries become world leadrs in this space. According to Thomson Reuters Scientific, China and Japan lead the world in terms of patents filed in Clean Technology and this is re-enforced by the levels of investment by government. For the purpose of the country review, the APR can be divided into four sub regions:
• North Asian countries that include China, Japan, South Korea and Taiwan, These countries are resource poor, leaders in manufacturing and are positioning themselves the be global leaders in this space. North Asia will account for 75% of the total APR power generated in 2010 and thiis expected to increase to over 80% by 2020, mainly driven by China.
• India, while a potentially large market, does not have the level of investment and manufactiuring capability, as its Northern Asian neighbours.
• South East Asia will be as largest as the Indian market in aggregate by 2030. These countries are resource rich and focused on geothermal, hydro and biomass sectors.
• Pacific (Australia and NZ) which are developed, resource rich and highly innovative countries that lead the region in new technologies such as wave, geothermal and CCS technologes.
The Handbook has focused primarily on renewable energy for power generation and technologies to reduce impact from fossil fuels, such as CCS and Clean Coal. In terms of Key Clean Technology sectors, the key sectors fall into the following categories:
• Infrastructure. For a lot of countries in the APR, Clean Technology is simply building new power capacity to keep up with growth. The largest contributors to renewable energy will be Hydro (14%), followed by Nuclear Power (8-9%). Renewable Energy will only account for 4% of total power generation by 2030.
• Commoditised Sectors. Manufacturing of Wind and PV Solar are moving to North Asian countries and in particular China, where there is high quality and there is a significant cost advantage.
Asia Pacific Clean Tech Handbook 17 of 348 26-Apr-10 • Innovation. Beyond, Wind, Solar and Biomass, countries such as Australia and New Zealnd lead in new sectors, such as Wave/Tidal, Geothermal and CCS.
• Even with all these proposed targets, power generated from fossil fuels will still account for over 70% of the power generation mix by 2030. Other mitigation measures, such as energy efficiency such as CCS will need to be included into projections to reduce the overall energy consumption and emissions in the APR.
Asia Pacific Clean Tech Handbook 18 of 348 26-Apr-10
1 INTRODUCTION
This Clean Tech Handbook is meant as a reference guide for people interested in investing in the Clean Technology space in the Asia Pacific Region (APR). It provides an overview of the different sectors by geography as well as highlights of the different policies and drivers for each market. The Handbook will:
• Define the Clean Tech market in the Asia Pacific Region by sector and geography
• Size the market opportunity by sector and geography
• Highlight the regulatory framework and the drivers across the Asia Pacific Region
• Highlight the key players within each sector and each geography from new emerging private companies to public companies listed on the stock market
• Looks at the various support structures for Clean Technology from government, private sector funding, academic institutions and highlights key technologies from universities
1.1 What is Clean Technology? There are many different definitions of Clean Technology or “Clean Tech” for short. Here the term is loosely applied to a number of fragmented technologies that will either replace existing supply of fossil fuels or use energy more efficiently. Part B goes into detail on each sector of the energy markets.
1.2 Why Clean Technology in Asia Pacific? The basic need for energy to keep up with economic growth will mean that renewable and Clean Technology will be required by countries to manage their energy resources for security, economic and environmental reasons. In addition Clean Technology is seen as a job creator by a key new industry which APR countries plan to dominate. With the breath-taking pace of change in the region, this Handbook will highlight some of the key issues of the APR which will provide impetus for development:
• In some sectors, Clean Technologies in APR could leapfrog the developed markets, particularly in infrastructure as most of the projects will be new
• Governments and large corporations in APR are already leading the Intellectual Property race and are leaders in patent filings (proxy for innovation) for Clean Technology
• Governments have set ambitious Renewable Energy targets to incentivize domestic players. This will accelerate the technology transfer and commoditization of these businesses, as they have done successfully in other markets, such as manufacturing
Asia Pacific Clean Tech Handbook 19 of 348 26-Apr-10 1.3 Factors driving the Clean Tech Market in Asia Pacific • Largest growing market - Increase in growth of APR economies, with a corresponding increase in carbon emissions and need for Clean Technologies. It is expected that APR will make up over 50% of the global emissions and most of the economic growth1
• Intellectual Property - While Asia is seen as a follower of technology, recent research by Thomson Reuters Scientific shows that Asia leads the innovation in Clean Tech with more patents produced than any other region. There will be opportunities for Asian companies to further develop and lead the Clean Tech revolution2
• High quality/low cost manufacturing - In addition, what the last technology boom has shown, is that technology can be adopted quickly in Asia and often leapfrog developed countries, as the infrastructure put in place is new – a key example will be the set-up of utilities and a smart grid. Solar, wind and marine technologies will become quickly commoditised and the move of the move to Asia, where high quality, low cost manufacturing will accelerate – as with other manufacturing sectors such as cars, silicon chips, and computers.
• Incentives for technology transfer – will further accelerate this transfer3
• Restricted International Participation - In addition, there are also regulatory or protectionist measures in place that may favour domestic players – such as the wind and solar market in China.
• Speed of change – While US and Europe overcome the credit crisis, with all the factors in place, there will be a much quicker transfer of Clean Technology to APR than many people expect.
1.4 Key Challenges for the Clean Tech Market in Asia Pacific • International Government Support and Policy – China and India have already set renewable targets in key sectors which will be the driver for set up of domestic industries that will supply both the domestic and international markets. The Chinese government in particular has used its fiscal policy to inject investment in key sectors such as solar and wind by encouraging lending until the end of 2009 and view this economically, rather than politically. However, without a framework in place this may lead to bilateral deals, thus the expansion of Chinese products may be confined to the region rather than the US and Europe.
1 See Figure 2.2, “Primary Energy Demand in Asia”
2 See Figure 2.6, “Number of Patent Filings in Clean Technology by country” and Section 2.5, “Research & Development”
3 See Section 2.4, “Targets and Incentives”
Asia Pacific Clean Tech Handbook 20 of 348 26-Apr-10 • Private Sector Funding Framework- What is missing is a framework which allows new companies to grow: a gap exists in the market for early round investment. The Venture Capital and Private Equity businesses are still a nascent industry, compared with the US and European markets.
1.5 Who would be interested in this Report? • Venture Capital and Private Equity Funds and banks interested in which countries, sectors and companies to target their investment • Government and public institutions • Financial advisors • Individual investors
1.6 Structure of the Handbook While Clean Technology involves many different sector includingenergy efficiency, this version of the Handbook will focus on renewables and other key technologies affecting power generation, notably CCS and Smart Grid.
Figure 1.1 – Asia Pacific Clean Tech Market Map
International Policy and Regulation
Government Policy and Regulation
Energy Supply Energy Usage Other Pollutants Support
Power Renewable Conventional
Sectors Generation Building Industry Transportation Water Waste Services Energy Energy Distribution
Private Wind Generation Coal Design Design Road Extraction Collection Sector Funding
Private Solar Distribution Gas Materials Materials Rail Treatment Recycling Sector Services
Energy from Government Biofuel Storage Oil Efficiency Efficiency Air Distribution Waste Agency
Demand Biomass Nuclear Water Usage Treatment Universities Management Sub Sectors Marine Hydrogen Storage Wastewater Disposal
Geothermal Covered in report Not covered in report Hydro Services & Support
The Handbook is written in two parts for ease of reference by country or by energy sector:
• Part A - Country Review – focused on country policy and incentives, such as regulation, renewable energy targets and Feed in Tariffs
• Part B – Energy Sector Review – focused on the process and supply chain of sector and key companies within each sector
Asia Pacific Clean Tech Handbook 21 of 348 26-Apr-10
PART A – COUNTRY REVIEW
Asia Pacific Clean Tech Handbook 22 of 348 26-Apr-10 2 COUNTRY OVERVIEW 2.1 Background The Asian Pacific Region (APR) can be broken down into four sub regions:
2.1.1 North Asian Countries China (Section 3.2), Japan (Section 3.3), South Korea (Section 3.4), Taiwan (Section 3.5), Hong Kong (Section 3.6). These five lead the world in engineering and manufacturing, with strong links between government and industry. Additionally North Asian countries are resource poor, therefore are net importers of oil and other commodities, thereby raising the issue of energy security. Clean Technology is viewed as a new strategic industry where there still no dominant companies. Clean Technology has many synergies with existing industries such as electronics for photovoltaic cells (PV) and heavy industry for wind generation. Key characteristics include:
• Leaders in Manufacturing – synergies with existing industries • Net Importers of energy • Largest emitters of carbon by country • Close ties between government and industry means that policy has the potential to be implemented more effectively
2.1.2 South Asia India (Section 3.7). While India will be the second largest market after China, it does not have the same drivers as it North Asian Colleagues. Key characteristics include:
• Large emerging market, but relatively poor compared with North Asia • Net importer of energy • Large emitter of carbon • Follower of technology andmanufacturing • Government 5-year planning, but less directive than North Asia
2.1.3 South East Asia Singapore (Section 3.8), Indonesia (Section 3.9), Malaysia (Section 3.10), Philippines (Section 3.11), Thailand (Section 3.12) and Vietnam (not included). Key characteristics include:
• Large emerging market but still relatively poor compared with North Asia • Large geography (archipelagos), no infrastructure in place – favour decentralized power system • Rich in renewable resources • Follower and importer of technology and manufacturing
Asia Pacific Clean Tech Handbook 23 of 348 26-Apr-10 2.1.4 Pacific Australia (Section 3.13) and New Zealand (Section 3.14) are both OECD countries and culturally ‘Anglo Saxon’ and not Asian. Howvever, due to their geographic location, are part of the APR and will be a key area in Clean Technology, due to:
• Developed countries • Resource-rich • Leaders in innovation • Established capital markets
2.1.5 Key Drivers for Clean Tehnology Key drivers for Clean Technology within these countries include:
• Market Size & Growth • Policy/Regulation • Developed vs. Emerging Markets • R&D/Manufacturing • Capital Raising
The following figure summarises the motivation, framework, sectors and factors of the Clean Tech market in APR: Figure 2.1 Asia Pacific Clean Tech Drivers
Rising Energy Costs Depletion of Natural Climate Change & Lowering Clean Tech Costs Resources Environmental Impacts
International Policy and Regulation
Government Policy and Regulation
Developed vs Emerging Research & Development Capital Markets
Energy Supply Energy Usage Other Pollutants Support
Renewab Power Conventi Building Industry Transport Water Waste Services le onal ation Generatio
County Variance Clustering of Industries Adoption of Technologies suited to natural resources?
Asia Pacific Clean Tech Handbook 24 of 348 26-Apr-10 2.2 Market Size & Energy Mix If we look at the potential market sizes for Clean Technology, then the region will contain some of the largest markets, based on energy usage rather than GDP. In 2009, Asia Pacific has three of the top ten countries in installed renewable energy, with around 2,338 TWh by 2030.
If growth factors are applied, then APR will account for three of the top five largest energy users globally: China, India and Japan. It is estimated that China will double power generation by 2020 and North Asia will account for over 75% of the total power generation for APR. According to the EIA forecasts, South East Asia in aggregate is projected to be a similar size to India by 2030.
Asia Pacific Clean Tech Handbook 25 of 348 26-Apr-10
2.3 Policy and Renewable Regulation Countries in APR are undergoing a huge transformation in industrialization and urbanization. This will lead to migration from rural areas to cities and thus lead to an increase in demand for power generation in urban areas. While discussions over emissions and setting a price on carbon were not resolved in Copenhagen, APR countries have already embraced Clean Technology and put in place new aggressive targets for 2020. Countries such as China and India understand that they will be some of the most affected countries due to climate change, but politically Clean Technology is an easier sell over a reduction in emissions as it promotes the:
• Creation of strategic domestic industries, that can eventually export internationally • Taking advantage of the high quality, low cost manufacturing base • Reduction of energy usage • Technology transfer and payment of credits
There is a possible risk of allocating too much resource to Clean Tech over emissions targeting, resulting in inefficient deployment of capital by government. If government sets renewable targets which drive investment, then they may misapply investment such as the Feed in Tariff for PV Solar in Germany and Japan. A case for a “Carbon tax” or “Carbon Trading Scheme” is that it internalizes the cost of carbon and thus leaves decision making to the private sector, which in theory should be more efficient.
Asia Pacific Clean Tech Handbook 26 of 348 26-Apr-10 2.4 Targets & Incentives Key targets and incentives for Clean Technology have been focused on intermittent wind and solar power which only affect peak loads rather than base load generation. China is already experiencing problems in managing the changes in supply to the grid4. The various “Feed in Tariffs” (FiT) that are primarily focused on solar and wind may distort the market and exacerbate the problem.
Figure 2.4 – Summary of Renewable Energy Incentives by Country
Generation TWh RE Targets FiT CapEx Tax & VAT
2010/20 Subsidy Incentive China 3968 6344 20% by 2020 Yes na Yes
Japan 1063 1182 20% by 2020* Yes Yes Yes
Korea 412 537 7% by 2010 Yes na na
Taiwan 218 354 12% by 2020 Yes na na
India 863 1463 10% by 2012 Yes Yes na
Indonesia 180 290 17% by 2025 Yes Yes na
Philippines 70 115 2010 2010 Yes Yes
Thailand 170 260 20% by 2022 Yes na na
Malaysia 130 150 5% by 2050 Yes na na
Australia 282 300 20% by 2020 State Level Various na
NZ 45 50 90% by 2025 Yes na na
Source: Government Publications, Thomson Reuters
2.4.1 Feed in Tariffs (FiT) There are currently around 40 FiT programs to promote and encourage renewable sources, with Germany’s FiT solar program held up as the successful model. Asian countries are in the process of applying FiTs, with a summary below:
4 Thomson Reuters
Asia Pacific Clean Tech Handbook 27 of 348 26-Apr-10 • China –has put in place its “Golden Sun” scheme to encourage investment in the solar industry. There are plans for a FiT for China, but at the time of writing it is not clear when it will be put in place and whether it will be set at the national level or at the provincial level5.
• Japan –has put in place a FiT scheme specifically for grid-connected solar power systems. The initial rate paid to the owners of systems will be around 50 yen per surplus kWh ($55 per MWh) produced. Utilities will be obligated to participate in the scheme. Japan aims to have solar power systems installed on over 70% of new houses and aims to regain its top spot as the largest solar market in the world.6
• Taiwan - The MOEA announced the final FiT scheme for renewable energy at the end of 2009. The tariffs were set at TWD 11.12 (USD 35 cents) per kWh for Photovoltaic (PV) projects and TWD 2.38 (USD 7 cents) per kWh for wind projects7.
• India - India's Central Electricity Regulatory Commission (CERC) in New Delhi announced new regulations for a FiT system for both wind and solar energy on Sepetember 17th, 20098.
• Australia –does not have a national FiT, but relies on states to set their own rates. Rates range from around 20 to 60 cents per KWh.9
5 NDRC, Medium and Long Term Development Plans for Renewable Energy 6 Thomson Reuters, Yomiuri Shimbun 7 MOEA, Government Publicatiion 8 Government Publication 9 Based on Government Publication and Website
Asia Pacific Clean Tech Handbook 28 of 348 26-Apr-10 Figure 2.5 – Summary of FiTs by Country
General Wind Solar Biomass Hydro Geothermal
China $0.075/kWh $0.16-0.22/kWh
Japan $0.24/kWh $0.5/kWh
Korea Standard Price
Taiwan $0.07/kWh $0.35/kWh
India $0.63-0.89/kWh $0.57-0.87/kWh $0.49-0.80/kWh
Indonesia $0.07/kWh % of production cost
Philippines To be set in 2010
Thailand See Breakdown $0.16/kWh $0.24/kWh $0.08/kWh $0.01-0.02/kWh
Malaysia $0.06/kWh
Australia $0.40-0.54/kWh
NZ
Source: Government Publications, Thomson Reuters
2.4.2 Baseload Power Generation Factors such as the move to the electric vehicle will put further pressure on base load power generation. Currently the primary energy source for base load power generation in APR is still coal, which still accounts for over 70% of the total power generation in China, India and
Australia. Addressing how to reduce reliance on coal for baseload power generation will be key to addressing the issues of carbon emissions in the APR.
A key driver for Clean Technology should be to increase renewable targets for the generation of base load power instead of just the peak load.
Short term investment and targets should be focused on renewables (or non-fossil), such as nuclear, hydro, biomass and geothermal which can provide reliable base load power.
Key targets and incentives for Clean Technology have been focused on intermittent wind and power, that only affect peak load, rather than base load generation. China is already experiencing problem is managing the changes in supply to the grid. The various Feed in Tariffs (FiT) that are primarily focused on solar and wind, may distort the market and exacerbate the problem.
Asia Pacific Clean Tech Handbook 29 of 348 26-Apr-10 Figure 2.6 Policy and Incentives
Urban Environment
*Targets for Base Nuclear, hydro, biomass, Policy renewables geothermal
Peak Wind, solar For China, India, SE Asia However, policy and incentives are geared towards renewables that affect peak loads – wind and solar Increase in industrialisation and urbanisation and migration from rural areas to Rural Environment urban areas Off Grid Wind, solar Power will be used for electricity that will lead to increase demand on base Transport and peak loads
Road Electricity, Biofuel, Hydrogen
In Asia, countries such as China, India and SE Asia are undergoing huge transformation in urbanisation Policy is focused on renewable targets that affect baseload and there is a focus on nuclear, hydro, geothermal and biomass that represent the major short term solutions
Power Generation in Asia 2010 2020
Genera Generat tion Capacit Therma Renew ion Capacit Therma Renew (TWh) y (GW) l Nuclear able (TWh) y (GW) l Nuclear able
China 3968 801 81.22% 1.64% 17.14% 6344 1116 76.41% 4.51% 19.08%
Japan 1063 253 61.84% 27.37% 10.79% 1182 260 59.23% 29.27% 11.50%
South Korea 412 70 64.32% 34.47% 1.21% 537 87 58.24% 39.33% 2.43%
Taiwan 218 75.23% 17.40% 7.37% 354 77.99% 16.38% 5.63%
India 863 177 77.29% 4.29% 18.42% 1463 247 71.79% 8.15% 20.06%
Indonesia 180 85.85% 0.00% 14.16% 290 87.17% 0.00% 12.83%
Malaysia 110 81.85% 0.00% 18.16% 150 76.91% 0.00% 23.09%
Philippines 70 62.83% 0.00% 37.17% 115 65.96% 0.00% 34.04%
Thailand 170 93.51% 0.00% 6.50% 260 94.33% 0.00% 5.67%
Australia 282 90.70% 0.00% 9.31% 300 89.74% 0.00% 10.26%
New Zealand 45 27.00% 0.00% 73.01% 50 26.21% 0.00% 73.79%
Source: EIA, IEA, CARMA, BP Statistics, Estimates
Asia Pacific Clean Tech Handbook 30 of 348 26-Apr-10 The key driver for power generation is cost. In the absence of an ‘internalised’ Carbon Price, coal is the still the cheapest source of power generation, followed by Natural Gas and Nuclear. The following section highlights and compares the cost and intermittency of generation from renewable sources. Some technologies such as Wave technology are still 4-5 times more expensive than coal and are thus still mot commercially viable.
The cost of power generation will vary by country and power station. Costs for power generation can be broken down into:
• Capital Costs; • Operation & Maintenance; and • Fuel Costs
Based on the 2005 IEA study, the average generation costs for different types of power stations (based on 5% discount rate) are:
A) By Conventional Power:
(i) Baseload generation
• Coal fired power station generation costs range between 25 and 50 USD/MWh
• Natural Gas fired power station generation costs range between 37 USD/MWh and 60 USD/MWh
B) By Renewable Energy:
(i) Baseload generation
• Nuclear power station generation costs range 21 and 31 USD/MWh
• Biomass - generating electricity range between 25 and 65 USD/MWh for most Combined Heat and Power plants (CHP) but reaches more than 120 USD/MWh for the small biomass- fuelled plant.
• Waste to Energy and Landfill Gas – generating electricity ranges from negative values (service value of burning waste) to around 24 USD/MWh
• Geothermal - generating electricity are 27.1 USD/MWh. Although this is based on one plant in the US and the cost are much higher for other technologies and can reach 100 USD/MWh for geothermal in Australia
• Hydroelectricity - generation costs range between some 40 and 80 USD/MWh for all plants except in Japan where they reach more than 140 USD/MWh.
(ii) Peak generation
• Wind-generation costs for the wind power plants considered in the study range between 35 and 95 USD/MWh, but for a large number of plants the costs are below 60 USD/MWh.
Asia Pacific Clean Tech Handbook 31 of 348 26-Apr-10 However, costs have fallen in recent years and should be in the lower range. The main issue for wind is intermittency and availability/capacity factors of wind power range between 17% and 38% for onshore plants, and between 40% and 45% for offshore plants and cannot be use for baseload power.
• Solar-generation costs of electricity were around 150 USD/MWh in 2005 and have fallen drastically, whereas they are now commercially viable without FiT subsidies at certain times in the day in sunny locations such as the Mediterranean and California. Solar also suffers from intermittency issues, with availability/capacity factors reported for solar plants varying from 9% to 24% for the solar PV plants.
• Wave/Tidal Technology – generating electricity is still in it pilot scheme: costs can reach up to 225 USD/MWh. Figure 2.7 - Cost of Generation
Marine
Solar Availability 10-25% PEAK Wind (Offshore) Availability 40-45% Wind (Onshore) Availability 20-40% Hydro
W2E
Biomass
Geothermal (EGS) BASE Geothermal
Nuclear
Gas
Coal
0 20 40 60 80 100 120 140 160 180 200 $/MW
Source: IEA, Estimate
Asia Pacific Clean Tech Handbook 32 of 348 26-Apr-10 2.4.3 Clean Development Mechanism Projects (CDM) In the absence of a Carbon Price, CDM plays a key role in subsidising renewable energy for many non Annex I countries in the APR10. CDM has been an additional incentive for Non Annex 1 countries11 to generate additional revenues and encourage the generation of renewable energy.
Asia accounts for over three quarters of all 5,516 CDM projects globally. China and India are the two largest markets globally, with 2,048 and 1,477 projects respectively. China’s projects are focused on hydro, wind, biomass, EE and coal bed methane projects, while India is biomass, wind and EE projects.
While no other country comes close to China and India - South East Asia - Indonesia, Malaysia, Thailand, and Vietnam- is the other sub region that accounts for the other major source of CDM credits.
10 Annex I of the FCCC lists the countries who were members of the OECD in 1992, 11 countries undergoing the process of transition to a market economy, and the European Economic Community. Annex I parties are committed to adopt national policies and take measures to mitigate climate change.
Asia Pacific Clean Tech Handbook 33 of 348 26-Apr-10 Figure 2.8 - CDM Projects in Asia
China 918 418 82 57 354 3 168 6 1 4 5 3 2 2048
India 150 380 386 82 366 5 7 1 3 1 0 1 1 7 5 1476
SE Asia 8 1 321 6 9 0 8 586 8
S Korea 85 Key
Hydro Energy Efficiency Agriculture/Forest
Other Wind Transport Industrial 80 Biomass Methane Other GG
China and India dominate the CDM projects globally and in Asia
China is dominated by hydro, wind and energy efficiency projects
Renewables make up over 50% of CDM projects
Source: UNFCC
Due to the muted response at Copenhagen the question is now, “What next?” CDM is viewed as time consuming, project specific and thus not scalable. There are attempts to move to sector specific targets that will allow for quicker adoption of standards and best practice and thus an ability to scale more quickly. Other discussions concern a developed country fund to finance key technologies through some form of Foreign Direct Investment (FDI), although there could be strings attached – such as funding of developed country technologies to be used in developing countries. Developed countries, such as Japan already employ such tactics in its dealing with developing countries and this approach is sure to increase.
2.5 Research & Development Another key driver is the Research and Development in the Clean Technology market. In APR, this tends to be dominated in the northern Asian countries – Japan, Korea, Taiwan and China because they are closely aligned to their existing manufacturing expertise. It is also interesting to note that governments have taken initiatives such as regulation, subsidies and fostering the development of domestic Clean Technology industries – for example, solar in Japan, solar and wind in China – even at the expense of technologies that are more aligned with countries’ natural resources. For instance, Japan has abundant wind, wave and geothermal resources, yet subsidizes and promotes the solar industry at the expense of other more suitable technologies. In
Asia Pacific Clean Tech Handbook 34 of 348 26-Apr-10 some ways, this close integration between government policy and industry – will act as the key driver for these northern Asian countries.
A study was undertaken by Thomson Reuters Scientific on patent filings in the renewable sector and a comparison between 1997-1999 and 2006-2008. This study included 12,000 filings and focused on the three main renewable sectors, namely: wind, solar and marine technologies. Patent filings are an indicator of research and development in sector and “statement of intent” by a country or company to invest in a particular industry.
China, Japan and Korea are the leaders of such filings globally which is bourne out by their respective positions in the wind, solar and marine sectors. It is also interesting to note India’s comparative weakness in this area.
• China - It may be a surprise to see China listed first, but Chinese inventions are increasing rapidly in almost every field. All 3 areas of wind, solar and marine are represented currently, with wind dominating. It is also ironic for a country that has in the past paid little respect to Intellectual Property Rights in its domestic market, should now file so many patents in the international markets to protect its own intellectual property
• Japan - The number of Japanese inventions is high and holding fairly steady. What is notable is a switch in emphasis from solar to wind, as well as a decrease in marine technology
• Korea - Korean inventions are taking off rapidly, but are still far below China and Japan. Wind energy predominates.
Figure 2.9 Number of Patent Filings in Clean Technology by country
Source: Thomson Reuters Scientific
Asia Pacific Clean Tech Handbook 35 of 348 26-Apr-10 2.6 Financing 2.6.1 Public Funding Countries in Asia Pacific recognize the importance of Clean Technology, as a driver for growth and have set aside funds to promote the development of their own domestic industries. Key countries include:
• Japan – now spends around 3 to 3.5% of GDP on R&D. Several funds and initiatives have been set up to promote R&D in Clean Technology via NEDO and AIST. METI has a budget of JPY500 billion (USD 5 billion), which it disburses to a range of agencies, universities, public research organisations and the not-for-profit sector for R&D.
• South Korea - will invest KRW 107 trillion (USD 96 mm) over the next five years in solar projects, energy-saving lighting, hybrid cars and other commercially viable, environmentally friendly businesses, its presidential office has announced. The Korean government will invest 2% of GDP annually in renewable energy from 2009 to 2013.
• Singapore - has embarked on a comprehensive and ambitious program to become a Clean Tech hub for Asia. Through the Economic Development Board (EDB), it has allocated SGD$1 billion (USD 727 mm), as part of its Sustainable Blueprint for 2030. In addition, it has set aside SGD$680 million (USD 494 mm) in Clean Energy (SGD$350m) and environment and water (SGD$330m).
• Philippines - The Department of Energy (DoE) has awarded 87 contracts to 18 companies to harness renewable energy in November 2009, investing a total of P90.4 billion (US$ 1.9 billion)
• Thailand - The World Bank said it plans to offer Thailand USD 700m for its clean energy projects and to boost energy efficiency.
• Australia - The Renewable Energy Development Initiative was a $100 million fund to supporting renewable energy innovation and commercialisation.
2.6.2 Private Funding • Australia - COAL21 Fund is raising more than AUD 1 billion over 10 years from a voluntary levy on black coal production to support the pre-commercial demonstration of low emissions technologies in the power generation sector.
2.6.3 Private Equity/Venture Capital The traditional Asian model of governments working into tandem with large corporations means that a lot of R&D and hence investment falls within large corporations – rather than via small and emerging venture capital backed ventures.
China, India and Australia lead the Venture Capital and Private Equity deals in Asia Pacific. The notable laggard is Japan, where it is a leader in research and development and Intellectual Property, but no way of accessing and leveraging that knowledge.
Asia Pacific Clean Tech Handbook 36 of 348 26-Apr-10 Also note that there are significant restrictions for Venture Capital funds to have a licence in China. The Chinese Government only granted a licence to an Israeli fund this year to start a fund in China. All other investments to date have been in joint venture with local partners. Figure 2.10 - VC/PE Clean Tech Deals in Asia
China Japan HK India S Korea Singapore 2,110M Australia Taiwan Other 71 Deals 67 Deals
1,624M
48 Deals 45 Deals
680M
386M
29 Deals 291M
2005 2006 2007 2008 2009YTD
Source: Thomson Reuters Venture Capital Database
2.6.4 Public Companies Only the ASX has defined companies in the Clean Tech sector and lists 73 companies in the Clean Tech sector. For other exchanges, Clean Tech companies fall into a number of different sectors – environmental sector services, industrial engineering (wind, marine), and semi conductors (solar)
China has multiple listings for many of its companies on the US and HK Stock exchanges, as a way to allow Chinese companies to access foreign capital.
Asia Pacific Clean Tech Handbook 37 of 348 26-Apr-10 Figure 2.11 – Public Clean Tech Companies in Asia
China Japan HK
India S Korea Singapore $81.9B $76.8B Australia Taiwan Other
156 Companies
146 Companies
130 Companies
115 Companies 102 Companies $37.3B
$32.3B
$21.6B
2005 2006 200 200 200
Source: Thomson Reuters Venture Capital 2.6.5 Project Financing A significant proportion of Renewable Energy projects are large scale infrastructure projects funded by project finance. There was a slight decrease in amount of project finance in Clean Technology in 2009 compared with 2008. The projects were in Nuclear, Hydro, Biomass and Wind technologies.
Asia Pacific Clean Tech Handbook 38 of 348 26-Apr-10 Figure 2.12 Project Finance Deals in Asia PacificSector
Wind Solar Water
Hydro Geothermal Waste/Wastewater
Biomass, W2E Nuclear Other 102 Projects 45,694M 44,178M 44,228 M 90 Projects
69 Projects
44 Projects
10,158M
2006 2007 2008 2009
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 39 of 348 26-Apr-10 3 COUNTRY, BY ENERGY SECTOR 3.1 Summary 2009 marked a point in time when APR countries recognized the importance of clean energy in terms of energy security, reduction in carbon emissions and growth of a new industry. This has lead to the announcement of new renewable energy targets and Feed-in-Tariffs.
3.2 China 3.2.1 Background China is expected to announce a new set of aggressive renewable targets, as part of the 12th Plan and raise targets to 20% of total usage by 2020. Encouraged by its “Made in China” fiscal stimulus in 2009, China views Clean Technology as key to:
• Growth of a new strategic domestic industry; • Energy security and reduce reliance on imported energy sources; and • Combat growing carbon emissions and reduction in energy intensity
China has made progress in laying a foundation for the future growth of green technologies and has rapidly emerged as one of the world’s leading providers in key sectors, most notably wind and solar. It is also taking significant steps to use energy resources more efficiently.
3.2.2 Market Size and Energy Mix
Primary Energy Demand Based on the EIA international outlook for 2009, China’s energy usage is expected to grow to 155 Quadrillion BTU by 2030 and account for nearly a quarter of the world’s energy usage. Coal usage will make up 63% of China’s total energy mix and 80% of its power generation.
Electricity Demand Coal makes up 80% of China’s power generation and is expected remain the major source of power generation for the foreseeable future. However, the EIA projections do not include the latest changes in renewable targets, such as the 100GW target for wind (40GW assumed) and 30GW target for PV (4GW assumed).
Asia Pacific Clean Tech Handbook 40 of 348 26-Apr-10
Gasoline/Diesel Demand According to the EIA, demand for Gasoline is around 67.5 million tonnes in 2007 and 150 million tonnes for diesel.
China has a target of 10 million tonnes for ethanol and 2 million tonnes for biodiesel by 2020.
3.2.3 Government Agencies China’s national government develops targets, guidelines and regulations, while there are provincial and local governments that are involved in the implementation of these regulations and policies. A summary of key agencies involved in Clean Technology are:
• National People’s Congress (NPC) is the country’s highest legislative body and responsible for formulating China’s laws as well as approving and tracking implementation of China’s Five Year Guidelines for Economic and Social Development
• The State Council is China’s highest executive body, and takes direction from the NPC. The State Council enacts key government regulations and coordinates the activities of China’s various ministries.
• National Development and Reform Commission (NDRC) established the policy document for the medium (2010) and long term (2020) development plan for Renewable Energy in China. Plays a key role in developing and implementing Five-Year Guidelines
Asia Pacific Clean Tech Handbook 41 of 348 26-Apr-10 • National Energy Commission (NEC). The Chinese government has set up the NEC in January 2010 as the highest level state agency to manage energy issues and co-ordinate overall planning between ministries.
• National Energy Authority (NEA) is the main energy regulator and currently drafting the energy planning during the period 2011 to 2015.
• Ministry of Environment Protection (MEP). Responsible for China’s overall environmental management. Sets pollution as well as energy and resource efficiency standards
• China Atomic Energy Authority (CAEA). Under the control of the Commission for Science, Technology & Industry for National Defence under the State Council of Ministers, the CAEA (www.caea.gov.cn) is responsible for planning and managing the peaceful use of nuclear energy and promoting international cooperation. Since being split from the old China National Nuclear Corporation (CNNC) in 1998, CAEA has been the key body planning and managing civil nuclear energy and reviewing and approving feasibility studies for new plants.
3.2.4 Clean Technology Regulation
Clean Technology • 12th Five Year Plan. China makes use of its national five year programs for Economic and Social Development to respond to policy and drive through new renewable targets through the China’s National People’s Congress. China is in its 11th Plan (2005 to 2010) and in the process of outlining targets for the 12th Plan in 2010. Based on comments from reports, it appears that renewable targets for the 12th Plan will be significantly increased to position China as a world leader in Clean Technology. Updated renewable targets are shown in Section 3.2.5, below.
• Draft Energy Law. China drafted the Energy Law in 2006 and submitted to the Legislative Affairs Office of the State Council in February 2009. The Law will need to be submitted to the National People’s Congress and is expected to come into force in 2010.
Renewable Energy Law The Renewable Energy Law, which came into effect 1 January 2006, outlines provisions on public funding for renewable energy development, discounted lending and tax preferences and connection of renewable generation to China’s electricity grid.
Under the law, grid operators are required to purchase all electricity generated from renewable energy sources within their domain or compensate renewable energy producers for their losses.
China's legislature is amending the law to set a minimum annual quota that power grid operators must purchase from renewable energy sources, in an effort to encourage them to buy more electricity from wind farms, solar farms and biomass projects. An amendment was submitted and approved by the NPC in December 2009 require electricity grid companies to buy all the power produced by renewable energy generators.
Asia Pacific Clean Tech Handbook 42 of 348 26-Apr-10 A renewable energy development fund will be set up to help cover levied surcharges on renewable energy prices.
Medium and Long Term Plans “Medium and Long-Term Plans” are policy planning tools used by China’s regulators, providing cross-ministry policy guidance for 10-20 year periods and complementing the more detailed five- year plans. Recent plans include Energy Development (2004-2020) and Renewable Energy Development (2007-2020)
Local Government Provincial and local governments play an important role in regulating China’s cleantech policies. Most central government agencies have corresponding bodies at local levels that are commonly tasked with implementing the policies of the central regulators, yet this interaction can often lead to discrepancies between central government policy and local implementation, as provinces vie to establish themselves the leading region for Clean Technology.
3.2.5 Renewable Targets & Incentives As part of the 12th Plan, China is expected to increase its renewable target to 20% by 2020. This will include target increases in key Clean Technology sectors, including: wind, solar, hydroelectricity and nuclear.
Chinese Renewable Targets Year 2005 2010 2020 Renewable Target 7% 10% 20% Hydro 117GW 190GW 300GW Wind 1.3GW 10GW 100GW
Solar PV 0.07GW 0.3GW 20GW
Solar Water Heating 80 Mm2 150 Mm2 300 Mm2
Biomass 2GW 5.5GW 30GW Nuclear 7GW 9GW 60GW
Bioethanol 1 MT 3 MT 10 MT Biodiesel 0.05 MT 0.2 MT 2 MT
Biomass Pellets 0 1MT 50 MT
Biogas and biomass gasification 8 billion m3/year 19 billion m3/year 44 billion m3/year
Source: NDRC, Medium and Long Term Development Plans for Renewable Energy, EIA, IEA, GWC, WNA, World Energy Council, Government Publications, Thomson Reuters
• Hydro. China plans to double its existing power generating hydroelectric capacity from about 150 GW to 300 GW by 2020, primarily through large scale hydro projects, such as Three Gorges Dam.
Asia Pacific Clean Tech Handbook 43 of 348 26-Apr-10 • Wind. China is expected to increase its 2020 target from 10GW (which it has already exceeded) to 100GW by 2020. In addition, there is a new Feed in Tariff in place since August 2009 to encourage wind power to the grid.
• Solar. China has introduced government subsidies and encourages investment in the growth of domestic solar market in 2009. From a market of virtually zero (150 MW in 2008), China is expected to increase targets in PV solar to 20GW by 2020.
• Solar Water Heating. One area of renewable energy in which China has emerged as an unchallenged leader is solar water heating. Currently, China boasts the world’s largest installed base of solar water heaters, over 125 millions m2, with one in ten families having adopted the technology. Analysts estimate that over 95% of core solar water heating technology is held by Chinese firms, such as Himin Solar Energy Group. China’s annual production of solar water heaters in 2007 reached 40 million m2, accounting for two thirds of global output.
• Nuclear. Nuclear projections are 60GW installed capacity by 2020, with 20 Nuclear Power stations under construction. In addition, a further statement from the State Council in 2009 is considering raising the 2020 target to 86 GW installed.
• Biomass. China has increased it biomass target to 30GW, primarily through cogeneration of agricultural waste and waste to energy projects.
• Biofuels. China has put in place a 10 million tonnes annual target for ethanol and 2 million tonnes target for biodiesel. However, the government has also put in place a ban on biofuels generated from grains & oilseeds and this limit the ability to produce biofuels domestically.
Feed in Tariffs (FiT) China has put in place its Golden Sun scheme to encourage investment in the solar industry and has recently put in place a FiT for onshore wind for four regions. There are plans for a FiT for China, but it is not clear, when it will be put in place and if it will be set at National level or at a provincial level. Current FiTs in place include:
• Wind. China has set a fixed FiT for new onshore wind power plants in a move to increase wind capacity. The NDRC announced in 2009, four levels of onshore wind projects, which according to region will be able to apply for the tariffs. Areas with bs2
• Solar. The Golden Sun subsidy was aimed at residential installations. There are also plans for FiTs for large scale solar installations, expected to be between 1.09 yuan and 1.5 yuan (US $0.16-0.22) per kWh of electricity produced at large-scale photovoltaic (PV) arrays.
Asia Pacific Clean Tech Handbook 44 of 348 26-Apr-10 Key Subsidies for Clean Tech in China Subsidy Date Amount Comment Large Scale Solar FiT Tbc • 1.09 to 1.5 yuan per • Large scale solar arrays kWh Wind Power Feed in August 2009 • 0.51 to 0.61 yuan per • FiT for Wind Tariff kWh Golden Sun July 2009 • 50% of grid connected • 300kW min capacity investment • 1 year construction • 70% of off grid • 20+ year operation investment Solar Roofs March 2009 • 15-20 yuan per watt • New construction • 50kW installation PHEV/EV/FC January 2009 • 28-600k yuan per • Fuel saving of at least 5% vehicle for passenger vehicles • 10% savings for buses Wind Turbines August 2008 • 600 yuan per kW • Only Chinese turbine manufacturers • 50 split between component suppliers and manufacturers Biomass Power July 2008 • Temporary tariff • Limited feedstock increase by 0.1 yuan/kWh Coal Bed Methane April 2007 • 0.2 yuan per m3 • Methane for consumer and chemical industry Source: NDRC, Government Publications, Thomson Reuters
Impact of Targets and Incentives Based on the increased targets, China will install an additional 120GW more Renewable Energy by 2020, compared with EIA assumptions.
Comparison of EIA Assumptions and Government RE Targets Year 2020 Targets EIA Assumptions Difference Renewable Target 20% 19% (24% with Nuclear) Hydro 300GW 310GW -10GW Wind 100GW 40GW 60GW Solar PV 20GW 4GW 16GW Biomass 30GW 0 30GW Nuclear 60GW 36GW 24GW Total 120GW
In order to meet a 20% renewable target by 2020, as proposed by the government, it will require an estimated additional 60 billion kWh (including hydro).
Asia Pacific Clean Tech Handbook 45 of 348 26-Apr-10 Capacity Requirement to meet 20% Renewable Target by 2020 Solar Wind Geothermal
Renewable Target 26-66GW 16-33GW 7GW
Assumption that solar is 10-25% available, Assumption that wind is 20-40% available, Assumption that wind is 90% available
3.2.6 Research & Development The central government subsidies R&D on key renewable energy technologies through NDRC and Ministry of Science and Technology (MoST) and also subsidies local government initiatives. An example is that China has jointly launched the Sino-Danish Renewable Energy Development program with Denmark to help stimulate clean energy development. The Danish government will provide its sector experience and grant USD 18.3m to the program. In July 2009 it decided to jointly invest USD 15m with the US to establish a Sino-US Clean Energy Research Centre.
3.2.7 Financing
Public Sector Funding Central government and some local governments provide the investment subsidies for the development of renewable energy through several big national programs, for example, rural small hydropower program, rural household biogas program, and providing subsidies to small scale PV systems and wind systems in remote areas.
Private Sector Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, China leads Asia, in terms of Clean Tech Venture funding, with 12 Deals totaling $147million in 2009. This is down from 2008.
Project Finance China also leads the number of project finance deals in Asia, with 9 deals amounting to over $10 billion, which was down from 2008.
Public Companies Most Chinese Companies involved in Clean Tech are listed on the Shanghai and Shenzhen Exchanges, with an inceasing number of companies listed in Hong Kong. There were 28 companies listed on the Shanghai and Shenzhen Stock Exchanges, with a Market Cap of $25.6 billion in 2009.
Asia Pacific Clean Tech Handbook 46 of 348 26-Apr-10 Figure 3.2 - Private Sector Funding in China
$29.4B 261M VC/PE Deals $25.6B Project Financing Deals 208M Market Cap/Companies
147M
134M 26 Deals
$12.7B $11.7B 28 Companies $10.0B 17 Companies 11.1B 25 Companies 21 Companies $6.0B
15 Companies 18 Deals $4.3B 13 Deals 12 Deals
10 Deals 9 Deals 8 Deals 5 Deals 0.4B 13M 3 Deals
2005 2006 2007 2008 2009
Source: Thomson Reuters
3.3 Japan 3.3.1 Background Japan is globally the second largest economy, the fifth largest emitter of carbon and along with Chindia, an important player in terms of their energy use. However, unlike China and India, Japan is a Kyoto signatory therefore committed to a carbon emission reduction by 2012.
Japan is one of the leading countries in Clean Technology, with leading companies such as Sharp and Kyocera leading photovoltaic (PV) technology. It is second to China in terms of patent filings in Clean Technology.
3.3.2 Market Size & Energy Mix
Primary Energy Demand Oil is the most consumed energy resource in Japan, although its share of total energy consumption has declined by about 30 percent since the 1970s. Coal continues to account for a significant share of total energy consumption, although natural gas and nuclear power are increasingly important sources, particularly as Japan pursues environmental policies. Japan is the third largest consumer of nuclear power in the world, after the United States and France. Hydroelectric power and renewable energy account for a relatively small percentage of total energy consumption in the country. Total energy consumption from 2003 to 2030 is forecast to
Asia Pacific Clean Tech Handbook 47 of 348 26-Apr-10 grow by 0.3 percent per year on average, relatively small as compared to China’s forecast growth rate of 4.2 percent per year on average, according to EIA data.12 The total primary energy production was 4.295 Quadrillion Btu in 2006.13
Power Generation Japan has a large proportion of nuclear power with an expected increase to over 40% of the total power generation by 2030.
The various government forecasts do not taken into account recent statements by the government to increase renewables to 20% by 2020, which would also have a substantial impact on the energy mix. However, the Japanese power market is dominated by 10 utilities, which effectively act as regional monopolies and require their support to effectively increase renewable energy targets in Japan.
In order to meet a 20% renewable target by 2020, as proposed by the government, it will require an additional 98 billion kWh (including hydro) to 190 billion kWh (excluding hydro), when compared with EIA forecasts.
12 Source: EIA, http://www.eia.doe.gov/emeu/cabs/Japan/Background.html
13 Source: EIA, http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=JA
Asia Pacific Clean Tech Handbook 48 of 348 26-Apr-10
Capacity Requirement to meet 20% Renewable Target by 2020 Solar Wind Geothermal
Renewable Target 86-216GW 54-108GW 24GW (excluding Hydro)
Renewable Target 45-112GW 28-56GW 12.5GW
Assumption that solar is 10-25% available, Assumption that wind is 20-40% available, Assumption that wind is 90% available
Gasoline and Diesel Demand Demand for gasoline and diesel was 57.5 million KL and 33.7 million KL in 2008, respectively.
As part of the Biomass Nippon Strategy, Japan has a 500,000KL target by 2010 for biofuels (210,000 KL for ethanol and 290,000 KL for biodiesel) that may increase to 6 million KL by 2030 with the use of cellulosic ethanol.
This equates to 0.6% of the total gasoline demand for ethanol and 1.4% of the total diesel demand for biodiesel.
3.3.3 Government Agencies There are a number of government agencies involved in Clean Technology. The key agencies are summarized below:
Renewables • Ministry of the Environment (MOE). The Ministry passes the legislation that sets the requirements (standards, bans, etc.) and targets that create the framework for environmental policies. The MOE cooperates on programs with other institutions, such as METI and Ministry of Agriculture on renewable and biofuel policy. The MOE supervises the National Institute for Environmental Studies (NIES), which is focused on Climate Change, Sustainable Material Cycles, Environmental Risk, and the Asian Environment.
• Ministry of Economy, Trade and Industry (METI). METI is a key driver for innovation in Clean Technology and sees this as an area where Japan can compete globally and act as an engine for growth. METI supplies significant research and development (R&D) budgets and is working on maintaining Japan’s leading position in patent applications in Clean Technology, as highlighted in Section 2.5.
• Agency of Natural Resources and Energy (ANRE). As a part of METI, the ANRE deals with; energy conservation policy, and new energy policy.
• New Energy and Industrial Technology Development Organization (NEDO). NEDO is Japan’s largest public management organisation promoting R&D as well as the dissemination of industrial, energy and environmental technologies. NEDO's mission is to enhance Japan's
Asia Pacific Clean Tech Handbook 49 of 348 26-Apr-10 industrial competitiveness and address energy and global environmental problems, and its role is to comprehensively coordinate and professionally manage R&D activities.
• National Institute of Advanced Industrial Science and Technology (AIST). AIST is one of the largest independent administrative institutions in Japan. In 2001, 16 research laboratories from the former Agency of Industrial Science and Technology were merged.
• Nippon Keidanren. The mission of Nippon Keidanren is to accelerate growth of Japan's economy via the private sector into one that is sustainable among other stated goals. In 1997, Keidanren business federation adopted its “Voluntary Action Plan on the Environment”, a commitment to reduce emissions of carbon dioxide by 2010 to a level lower than year 1990. By the year of 2005, 35 industries were engaged in applying measures toward this goal (altogether representing 45% of Japan’s total CO2- emissions in 1990). A follow-up has shown that CO2 emissions for 2004 were 0.5% lower than in 1990, and the reduction target has been achieved every year since 2000 (Nippon Keidanren, Nov 2005).
Energy Efficiency • The Energy Conservation Centre, Japan (ECCJ). The Energy Conservation Centre contributes to promoting the efficient use of energy, protection of the global warming and sustainable development.
3.3.4 Clean Technology Regulation
Renewables • The National Energy Strategy (2006) focusses on the promotion of energy diversification with the aim to lower the oil demand of the primary energy mix to 40% by 2030. It also aims to increase nuclear power make-up to 30-40% of the total power generation by 2030. There is also a stated goal of improving energy conservation by 30% by 2030.
• National Emissions Target. As part of the Kyoto Protocol, Japan is committed to reducing emissions targets by 6% from 1990 levels. Japan is in the process of agreeing to post 2012 targets.
• Biomass Nippon Strategy. Japan has a target of 500,000KL, as part of the strategy. It also looks at increasing potential supply to 6 million KL by 2030 with the introduction of cellulosic ethanol.
Energy Efficiency Regional cooperation for energy efficiency. Japan encourages energy efficiency through promoting energy conservation standards and assessment systems by sectors in the Asia-Pacific region. In particular, Japan seeks to establish a regional framework to save energy. The “Asia Energy and Environmental Cooperation Strategy” seeks to promote energy conservation by working with other countries in Asia mainly, China and India, given the rapid increase of their energy demand.
Asia Pacific Clean Tech Handbook 50 of 348 26-Apr-10 3.3.5 Renewable Targets & Incentives Japan, as a Kyoto signatory, is committed to a 6% decrease from 1990 levels by 2012. With a change in government in 2009, the DPJ has proposed a more aggressive target of 25% on 1990 levels by 2020, which was an increase over 15% reduction on 2005 levels (8% reduction on 1990 levels).
In an interview given to Yomiuri Shimbun, Japanese Environment Minister Sakihito Ozawa stated the government is aiming to introduce a new target for the country's environmental protection effort – 20% renewable energy generation by 2020. The new target will be promoted through a basic bill to be submitted to the ordinary Diet session in 2010.
The new goal is more than 10 times higher than the existing renewable target (1.3%) and twice as high as the one proposed by the Democratic Party of Japan in their manifesto in 2009.
If the bill passes, Japan will be vying for increased solar, wind, marine, hydropower, biomass and other renewable energies in the near future - in line with China and Australia’s 20% renewable targets. Japan’s renewable energy accounts for 10% of the country’s total power production, and excluding hydropower it is about 2%, according to a white paper published by the government.
According to a government estimate, Japan's plan to cut greenhouse gas emissions is expected to boost the nation's share of electricity from nuclear power to 44% from the current 31%.
The government intends to expand power generation capacity from PV by 20 times by 2020, up to 28 million kW. These measures announced in April 2009 are estimated to boost the share of renewables in electricity generation to 6% from the current 1%. Geothermal is a notable absence in the targets set.
Japan Renewable Targets Year 2008* 2010T 2020T 2030T Electricity Capacity 251GW 253GW 259GW 255GW Electricity Generation 1099TWh 1144TWh 1147TWh 1186TWh Renewable Target na 1.3% 20%* Hydro 13.8GW 13.8GW 13.8GW Nuclear 47.5GW 76GW*
Wind 1.9GW 3GW
Solar PV 2GW 14GW
Geothermal 535MW 535MW 535MW Biomass 2.6 million KL 20.5 million KL Bioethanol 210,000KL 6 million KL Biodiesel 290,000KL
Source: EIA, IEA, GIA, NWA, Estimates, * Proposed Target
Asia Pacific Clean Tech Handbook 51 of 348 26-Apr-10
Feed in Tariffs (FiT) The Renewable Portfolio Standard (RPS) scheme came into effect in 2003 and covered renewable contributions to the grid. Renewable energy sources included:
• Solar • Wind • Biomass Generation • Small Hydro (up to 1MW) • Geothermal
The targets set up by METI were 1.35% of the total electricity capacity by 2010. However, due to the monopolistic structure of the power market, there have been ceilings and restrictions imposed by the 10 utilities that have hampered the growth of renewable power.
Solar After the removal of solar subsidies in 2008, the government launched a net model FiT scheme to increase solar demand, where owners of grid connected solar power systems will be paid a premium rate for surplus electricity generated. The initial rate paid to owners of systems will be around 50 yen per surplus kilowatt hour produced, double the current rate of 24 yen. The premium rate was calculated in order to enable customers who have purchased grid connect systems to recover their initial outlay over 15 years. All electricity utilities in Japan will be required to participate in the scheme. It's expected the additional cost will be passed on to consumers and the government hopes to limit the increase in electricity bills to less than 100 yen per month on average. Japan announced funding of 9 billion yen (USD$100 million) in the first quarter of 2009 for other incentives to encourage home solar power; with further funding to come. Japan aims to have solar power systems installed on over 70% of new houses. The MOE estimated in 2009 that Japan's solar power generation could increase to 37GW by 2020. The study panel concluded that a fixed-price system for the purchase of renewable energy and a RPS would help the country hit a target of 16% to 18% renewable energy generation by 2020 or 9% to 10% excluding large hydro.
Wind While the RPS has a low target, limited grid access and the monopolistic hold over the power grids by regional utilities have restricted wind contribution. Japan trails China and India in the contribution of wind power to its power generation.
Biomass Biomass accounted for around 43% of the total RPS in 200814
14 Agency for Natural Resources and Energy Agency
Asia Pacific Clean Tech Handbook 52 of 348 26-Apr-10 Restrictions on Wind Power to the Grid Utility Capacity Restriction %
Tokyo 60GW No restriction n/a
Kansai 37GW No restriction n/a
Chubu 33GW No restriction n/a
Kyushu 19GW 700MW (2006) 3.7%
Tohoku 16GW 520MW (2006) 3.25%
Chugoku 12GW 400MW (2005) 3.3%
Hokuriku 8GW 80MW (2006) 1%
Shikoku 7GW 200MW (2005) 2.9%
Hokkaido 6GW 50MW (2006) <1%
Okinawa 2GW 25MW (2006) 1.2%
Source: Institute for Sustainable Energy Policy
3.3.6 Research & Development Japan is a world leader in terms of R&D expenditure, with spending estimated at around 3 to 3.5% of GDP. Several funds and initiatives have been set up to promote the R&D phase of new environmental technologies via NEDO and AIST. METI has a budget of JPY500 billion (3.5 billion Euro), which it disburses to a range of agencies, universities, public research organisations and the not-for-profit sector for R&D. The main focus for METI are: industrial competitive performance, environmental and energy problems.
NEDO promotes research and development across a wide spectrum of technological stages through the following activities:
• National projects (medium- to long-term, high-risk R&D projects); • Support for practical application by business enterprises; • Grants to universities and other research organizations for the discovery of technological seeds.
Drawing on the combined efforts of industry, academia and government, NEDO mainly carries out national R&D projects that stimulate the economy through enhanced Japan’s industrial competitiveness. It also endeavors to provide solutions to energy and environmental problems.
AIST covers six research fields, i.e. life science & technology, information technology & electronics, nanotechnology, materials & manufacturing, environment & energy, geological survey and applied geoscience, metrology and measurement technology. In particular, AIST is engaged in developing technologies based on sustainable energy having low environmental impact.
Asia Pacific Clean Tech Handbook 53 of 348 26-Apr-10 Some examples of R&D programs in Japan include:
• The Industrial Cluster Policy. In 2001, Japan launched an Industrial Cluster Policy following the international debate on Clusters and Systems of Innovation. Some of METI's Industrial Clusters relate to environmental themes. Budget is available for industry-academic network formation, technical development, incubator and related facilities for entrepreneurs, and market development and collaboration with financial institutions.
• The Eco-town project. METI and MOE introduced the eco-town initiative in 1997. Financial support by both ministries triggered regional scale initiatives that targeted the effective resource circulation of a full range of by-products based on three industrial ecological principles: (a) the zero emissions concept; (b) principle of 3Rs; and (c) green procurement and EMSs. There are 26 eco-town projects in Japan. There are also efforts to promote cooperation among eco-towns through clustering.
• Biomass-towns. As part of the Nippon Biomass Strategy, the government planned to launch 300 biomass towns by 2010.
3.3.7 Financing
Public Sector Funding The Japanese government announced that it would contribute $40m to the Scaling Up Renewable Energy in Low Income Countries program (SREP), and $60m to the Forest Investment Program (FIP).
Private Sector Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were only 2 deals completed in 2009. For more information, contact the Japan Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there we no deals associated with Clean Technology in Japan in 2009.
Public Companies Most Japanese Companies involved in Clean Tech are listed on the Tokyo Stock Exchange. There were 14 companies, with a market capitalisation of $1.9 billion in 2009. This excludes the large comglomerates such as Mitsubishi Heavy Indutries, where most of the investment in Clean Technology in Japan is made.
Asia Pacific Clean Tech Handbook 54 of 348 26-Apr-10 3.4 South Korea 3.4.1 Background South Korea has decided on a 30% reduction of greenhouse gas emissions from their forecast levels in 2020 even though it is not an Annex 1 country. According to a statement from the presidential office, the goal is to cut the country's greenhouse gas emissions from its business as usual (BAU) level in 2020 which is equivalent to reducing the country's emissions by 4% from their 2005 level.
3.4.2 Market Size & Energy Mix
Primary Energy Demand The total energy demand of South Korea in 2006 was 1.514 Quadrillion Btu.15
Electricity Demand While South Korea has set ambitious targets to reduce carbon emissions, it has not set renewable targets like China, India, Japan and Australia.
South Korea has embarked on a large nuclear power generation program through Korea Nuclear Hydro Power (KNHP) and expected to increase generation to 243 billion kWh.
15 Source: EIA, http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=KS
Asia Pacific Clean Tech Handbook 55 of 348 26-Apr-10 3.4.3 Government Agencies • Ministry of Environment (MOE). The Korean Ministry of Environment is responsible for work related to the protection of natural and ambient environment as well as the prevention of environmental pollution.
• Korea's Energy Management Corporation (KEMCO) receives its mandate from MKE: MKE regulates; KEMCO implements and reports to MKE. The focus is on energy efficiency, new sources of energy and renewables (fuels cell, photovoltaic, and wind power).
• The Ministry of Knowledge Economy (MKE) is in charge of development and distribution of renewable energy and offers financial support to targeted sectors, such as solar, wind, small hydro and geothermal energy.
3.4.4 Renewable Regulation • Alternative Energy Act (1997, revised 2002). This policy constitutes the initial framework for the development of new and renewable energy technologies. It aims to secure cost-effective renewable energy by fitting the energy supply to the characteristics of the supplied area by cost effective business modeling. It encourages the installation of waste-incineration plants to generate heat and power. It also promotes residential solar heaters, small hydropower plants and facilities to use methane gas.
• 10-year Basic Plan for the Development and Dissemination of New and Renewable Technology. The 10-Year National Plan for Energy Technology Development, released in 2003, brings to the fore fuel cells, photovoltaic (PV), wind power as high-priority areas. The Korean government plans to invest approximately US$ 200 million in the development and dissemination of fuel cell from 2004 to 2011 and US$2.42 billion for the photovoltaic.
• Strategies for Environmental Technology Development. The First Phase Environmental Industry Development Strategy (2001~2003) and the Mid- & Long-term Strategy on Fostering Environmental Industry (2005~2012) aims at advancing the Environmental Technology to the level of other developed countries by 2012
• The Long-term Vision for Science and Technology Development Toward 2025. The Korean government launched this long-term strategic initiative “Vision 2025” in 1999. The plan sets the direction and goal of the Korean government’s science and technology (S&T) policies. Among its major features, the plan promotes: a shift of innovation from government- led to private sector-led ones; improving the effectiveness of national R&D investment; aligning R&D from a domestic to a global network; with the aim to meeting the challenges of the information technology and biotechnology revolution.
3.4.5 Renewable Targets & Incentives As part of South Korea new “Green Deal” in 2009, it put in place an aggressive plan to increase its investment in the renewable space. However, apart from a biofuels mandate planned for 2013, there are no clear renewable targets.
Asia Pacific Clean Tech Handbook 56 of 348 26-Apr-10 South Korean Renewable Targets Year 2008 2010 2020 2030 Electricity Capacity 67GW* 70GW 87GW 102GW Electricity Generation 462TWh 412TWh 534TWh 650TWh Renewable Target 7% Hydro 1,584MW 1,584MW 1,584MW Nuclear 17.5GW 26GW 30GW Biofuel 0.32MT 0.7MT Source: Government Publication, EIA, BP Statistics
• Biofuels. South Korea is planning to introduce a renewable fuel standard system by 2013 to mandate a double-digits proportion of biodiesel fuel contained in gasoline.
Feedin Tariffs The Electricity Business Law governs both the purchase and the fixed price of electricity generated from renewable sources. Any renewable energy generator that is connected to the grid is eligible to sell electricity to the grid at fixed prices. KEPCO is responsible for purchasing electricity from renewables. The government compensates for the difference between N&RE power generation cost and fossil fuel generation prices. From October 2006 onwards, the power sources subject to the standard price have been extended. Standard prices were set for 19 prices for 9 power sources. A reduced rate will be applied to photovoltaics and wind power from 2009; and similarly a reduced rate will apply to fuel cell from 2010 onwards. The standard price for each power source will be applicable for 15 years. The requirements for minimal capacities for the feed in tariffs are as follows: 100, 1000, 50 MW for photovoltaics, wind power and fuel cell respectively.
3.4.6 Research & Development The Korean Government leads research and development (R&D) activities in collaboration with industry, universities and research institutes. Priority projects are financed by the government budget and energy-related funds from the government and industry. Three important long term projects focusing on R&D are:
• 21st Century Frontier R&D Program. The Frontier 21 program, launched in 1999 and run by the MOST, is a 10 year effort to develop core technologies in near-to-market areas by 2010. This program supports 23 projects in areas such as bioscience, nanotechnology, and information technology, at a total cost of over US$3.5 billion. Among these, the government financed projects on Carbon Dioxide Reduction and Sequestration (in 2002), and on Hydrogen Energy (in 2003).
• Eco-Technopia 21 Project. The project has started to follow up the G7 project since 2001, which was a 10-year project, run by MOE, launched in 1992 with the aim to develop seven areas of environmental technology to the level of G7 countries. The G7 project helps close the technological gap that exists between Korea and advanced countries – especially on the so called ‘post-treatment technologies’ such as dust collection, advanced waste water
Asia Pacific Clean Tech Handbook 57 of 348 26-Apr-10 treatment, and small-scale incineration. High efficiency dust collecting technology and exhaust gas desulfurization technology have been improved as a result.16
• Eco-STAR (Eco-Science & Technology Advancement Research). The Eco-STAR plan, which is a part of Eco-Technopia 21 Project developed by MOE, sets mid- and long-term strategies to develop promising environmental technologies by sector. It is focused on projects which can deliver world-class technologies that will compete on global markets. The rationale is to maximise synergistic effects through joint or multilateral R&D on projects unable to achieve targets independently. Projects are selected according to their commercialisation and success potential; they are financed through a matching fund system where the government works with industry. In 2004, two pilot centres were set up: the ‘Centre for Environmentally Friendly Vehicle’ focusing on developing technologies for vehicle emission reduction (with the investment of 65 billion won (USD 60 mm) by 2010), and the ‘Innovation & Integration Centre for XXIst Century Water Technology’, devoted to advancing sewage and wastewater treatment technologies (with an investment of 65 billion won). Based on the outcomes and experiences from these pilot initiatives, MOE plans to promote a gradual expansion of the Eco-STAR Project by launching two new centres in 2007: the ‘Centre for Aquatic Ecosystem Restoration’, devoted to restoring and controling the eco-system; and the ‘Centre for Waste Eco-Energy and Greenhouse Gases’, designed to respond to energy needs and climate change.
• National Research Laboratory (NRL). The program identifies and cultivates outstanding laboratories in core technologies for national competitiveness. This strategic national R&D program maintains and develops technologies that can be the common basis for many industries and products. It also supports the efficient utilization of the science and technology resources in industry, academia, and research institutes throughout the nation. By 2005 about 40 laboratories set up in this context were related to environment.
3.4.7 Financing
Public Sector Funding According to the presidential office, South Korea will invest KRW 107 trillion (USD 100 bn) over the next five years in solar projects, energy-saving lighting, hybrid cars and other commercially- viable, environmentally-friendly businesses. The Korean government will invest 2% of GDP annually in renewable energy from 2009 to 2013. Korea has already allocated KRW 11.5 trillion of this year's budget for its “Green Growth” plan, which is expected to generate as much as KRW206 trillion (USD 163bn) in industrial output and create as many as 1.8m jobs.
The South Korean government is setting up a KRW 100 bn (USD 73m) clean energy fund, with half of the amount to be contributed by private investors. The fund will be used to bolster investments in solar, wind and hydro power technologies and projects. Among these are plans for
16 Source, Net. http://koetv.or.kr/engpage.do?mode=activities1
Asia Pacific Clean Tech Handbook 58 of 348 26-Apr-10 26 wind turbines to be built in coastal areas, a feasibility study for a future 40MW wind farm in Saemangeum, a tidal flat on the coast of the Yellow Sea, domestic fuel cell adoption, and a bioethanol pilot plant. 50% of the funds will be used for funding of wind power projects and to aid consolidation in the domestic solar industry.
• Demonstration & Dissemination Program. To promote the marketing of developed New and Renewable Energy (N&RE) technologies, the government subsidizes 70 percent of the associated installation costs. Some 10.5 billion won (USD 9.5 mm) of subsidies were provided by the government from 1993 to 2003: for PV Power Generation Systems, Solar Thermal Water Heating Systems and Bio-Methane Generation Systems. Another 4.7 billion won (USD 4.2 mm) were provided in 2004 to deploy developed N&RE technologies: PV, solar thermal water heating, geothermal systems and wind power generation systems.
• Environmental Venture Fund. In order to support environmental technologies, the Korean Ministry of Environment has created an Environmental Venture Fund and has actively identified and supported promising venture companies. Environmental Technology Business Incubator (ETBI) has been set up under the supervision of the Korea Institute of Environmental Science and Technology (KIEST) to assist venture activities of those at the frontier of environmental technology development.
South Korea's Ministry of Strategy and Finance has reduced import duties on equipment and components used for renewable energy projects by 50% as of 23 September 2009. The 31 products to benefit from the reduction include components used to harness solar energy, wind power, hydrogen fuel cells and geothermal power. Items include transparent electrodes used in thin-film solar cells, generators, glass or carbon fiber for wind blade manufacturing, fuel cells and compressors for geothermal plants. The ministry estimates about KRW 10.8 bn (USD 8.97 m) reduction in tariffs to be paid by the companies importing these products with the new policy. 17
Private Sector Funding The state-run Export-Import Bank of Korea, in collaboration with 12 public and private firms, is set to establish a KRW 100bn (USD 85m) joint carbon fund. This semi-private fund is aimed to help local firms to cut greenhouse gas emissions, provide capital for feasibility studies and buy emission rights in advance. Eximbank had earlier said that it will invest KRW15 bn (USD 13m) in the fund with the funds to come from the Ministry of Knowledge Economy, public and private businesses interested in CDM projects. The Korea Investment Trust Management Company is acting as a fund manager. Media reports suggest that the fund is expected to expand to KRW 100 bn as more firms are likely to participate in the initiative.18
17 Source: BusinessGreen.com, http://www.businessgreen.com/business‐green/news/2249866/south‐korea‐ slashing‐import
18 Source: Korea Times, http://www.koreatimes.co.kr/www/news/biz/2010/02/283_52405.html
Asia Pacific Clean Tech Handbook 59 of 348 26-Apr-10 Venture Capital Based on the Thomson Reuters Venture Capital Database, there were 5 deals completed in 2009, totaling 80 million. For more information, contact the Korean Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there were 5 deals totaling $10.5 billion, associated with Clean Technology in Korea in 2009.
Public Companies Most Korean Companies involved in Clean Tech are listed on the Korean Stock Exchange. Excluding large conglomerates, there were 6 companies, with a Market Capitalisation of $300 million in 2009.
Figure 3.5 South Korea - Private Sector Funding
80M $10.5B
VC/PE Deals
Project Financing Deals 58M Market Cap/Companies
16M 16 Deals 16M 13 Deals 13 Deals 5 Deals 9 Deals 8 Deals 8 Deals 6 Deals 6 Deals 5 Deals 6 Deals 0.6B 6 Deals 0.7B 6 Deals $0.8B 6 Deals $0.3B $0. 5B n/a $0.3B $0.2B $0.4B
2005 2006 2007 2008 2009
Source: Thomson Reuters 3.5 Taiwan 3.5.1 Background Taiwan passed a renewable energy act in 2009 to promote the use of renewable energy. Like other Asian countries, it has embarked on an ambitious program to increase its consumption from renewable energy due to: energy security, carbon emissions and growth of its domestic industry. In particular Taiwan aims to position itself as a global leader in the solar market.
3.5.2 Market Size & Energy Mix
Primary Energy Demand Oil is by far the dominant fuel in Taiwan's energy mix, accounting for 46 percent of total primary energy consumption in 2003. Coal also plays an important role (36 percent of total energy
Asia Pacific Clean Tech Handbook 60 of 348 26-Apr-10 consumption), followed by nuclear power (9 percent), natural gas (7 percent), and hydroelectric power (less than 2 percent). Taiwan has very limited domestic energy resources and relies on imports for most of its energy requirements. The country's industrial sector accounts for about 42 percent of total energy demand, but this share is expected to decline slightly, since Taiwan's economy is moving toward newer, less energy-intensive industries.19
Electricity Demand Taiwan is heavily reliant on imported fossil fuels, which account for around 70% of production. It plans to target solar and wind power to reduce its reliance on fossil fuels.
3.5.3 Government Agencies The state environmental machinery in South Korea came to develop rapidly in 1990s with the expansion of civil society and the proliferation of NGOs, which have facilitated the transformation of the developmental state into the welfare state. Vigorous civil activism on environmental issues has helped prompt the creation of governmental environmental agencies, laws and enforcement mechanisms.
• The process requires Executive Yuan to pass legislation for the Ministries to implement. The administration passed a renewable energy act in 2009 with the goal of increasing Taiwan’s renewable energy generation capacity by 6.5 million kW to 10 million kW within 20 years.
19 EIA (2005), http://www.eia.doe.gov/emeu/cabs/taiwan.html
Asia Pacific Clean Tech Handbook 61 of 348 26-Apr-10 • The Ministry of Economic Affairs (MOEA) continues to implement the various economic policies in Taiwan’s interests, and has targeted Clean Technology as a key sector.
• The Bureau of Energy (BOE) is responsible for the implementation of the energy policy including the “Renewable Energy Development Act”.
• Environmental Protection Administration (EPA) On August 22, 1987, the Environmental Protection Bureau, the Department of Health, Executive Yuan, was upgraded as the "Environmental Protection Administration" governing seven departments: comprehensive planning, air quality protection and noise control, water quality protection, waste management, environmental sanitation and toxic substance management, supervision evaluation and dispute resolution, environmental monitoring and information management. Taiwan Provincial Government upgraded the Environmental Protection Bureau as the Department of Environmental Protection on January 15, 1988. In coordination with the re-engineering of governmental organization, the Department was reformed as the Central Taiwan Office in July 1999, and was annexed to the EPA in March 2001 and re-organized as the EPA Inspectorate. Each city and county government gradually set up an Environmental Protection Bureau to enhance environmental protection work and function between 1988 and 1991. With the establishment of the Environmental Protection Bureau of Lienchiang County, in January, 2003, the environmental protection organization and structure was complete.
• The Atomic Energy Council (AEC) consists of representatives from relevant government ministries. The Radwaste Administration is a subsidiary body regulating radioactive wastes The Nuclear Regulatory Division and Radiation Protection Division are also parts of the AEC. The AEC is also responsible for nuclear safety. The Atomic Energy Law came in to force in 1968 and various regulations have been promulgated under it.
3.5.4 Clean Technology Regulation • The Renewable Energy Development Act was passed in June 2009 to promote the development of renewable energy in Taiwan. The legislation is expected to promote the growth of the renewable energy industry and increase power generated from renewable from 6,500 to 10,000 MW by 2030. The law provides incentives to encourage providers to intensify their efforts of producing energy from renewable resources. It will also introduce a pricing mechanism for each renewable energy resource such as wind and solar power industry.20
• The 2005 Taiwan Energy Policy Whitepaper outlines strategies for future energy development with a goal of 12% of installed capacity of renewable energy sources.21
20 Source: Council for Economic Planning and Development, http://www.cepd.gov.tw/encontent/m1.aspx?sNo=0012048
21 Source: Industrial Technology Research Institute, http://re.org.tw/Re2/Eng/promotion.aspx
Asia Pacific Clean Tech Handbook 62 of 348 26-Apr-10 3.5.5 Renewable Targets & Incentives Taiwan Energy Policy targets a 10% contribution by renewable energy of the total installed capacity in 2010, with an increase in capacity to 12.5% by 2035.
There is also a target to use B2 diesel by 2010 and E3 gasoline by 2011, with a projected demand of about 400,000 tonnes by 2010.
Taiwan Renewable Targets Year 2005 2010 2020 2025 Electricity Generation 209TWh 354TWh Renewable Target (Installed 4.3% 10%(5130MW) 12% (7- 9-10,000MW Capacity (2,500MW) 8,000MW) Hydro 1,911MW 2,168MW Nuclear 4 power 6 power stations in stations in operation operation Wind 23.9MW 2,159MW 3,000MW Solar PV 1MW 21MW Solar Water Heating 1.315M m2 2.15 M m2 Biomass 562MW 741MW Geothermal 0 50MW Biofuel 0 0.4M T Source: Government Publications, WNA, BP Statistics, EIA, Estimates, CARMA
Feed in Tariffs The MOEA announced the final feed-in tariffs (FiT) for renewable energy at the end of 2009. The tariffs were set at TWD 11.12 (USD 35 cents) per kWh for PV projects and TWD 2.38 (USD 7 cents) per kWh for wind projects.
3.5.6 Research & Development The government will allocate TWD20bn (USD 636m) for Research & Development programs to raise the standards of renewable energy technologies in a statement in January 2010.
3.5.7 Financing
Government Funding The government said it plans to invest TWD 25bn (USD 786m) in renewable energy and energy efficiency projects over the next five years to help reduce carbon emissions.
Private Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were 3 deals completed in 2009, totaling 50 million in Clean Technology. For more information, contact the Taiwan Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there were 2 deals totaling $791 million, associated with Clean Technology in Taiwan in 2009.
Asia Pacific Clean Tech Handbook 63 of 348 26-Apr-10 Public Companies Most Taiwanese Companies involved in Clean Tech are listed on the Taiwan Stock Exchange. There were 12 companies, mainly in the PV solar sector, with a Market Capitalisation of $4 billion in 2009.
3.6 Hong Kong 3.6.1 Background Despite being a small terriotory, Hong Kong serves as a regional capital-raising hub for Clean Technology companies, particularly from China. Many of the leading Chinese Clean Technology companies have chosen to go public on the Hong Kong Stock Exchanges.
3.6.2 Market Size & Energy Mix The total energy consumption in 2008 was 1.164 quadrillion BTU22 and power generation was 37Twh in 2008.
3.6.3 Government Agencies • Environmental Protection Department (EPD) of Environmental Bureau is the regulator of the Energy markets in Hong Kong. In 2008, a Memorandum of Understanding (MoU) with the National Energy Administration (NEA) was signed to secure a clean energy supply for the longer term.
3.6.4 Clean Technology Regulations In 2000, a study commissioned by Electrical and Mechanical Services Department found that solar power, energy from waste and wind energy have the potential for wider use in Hong Kong: it aims for renewable energy to account for 2% of its total electricity supply by 2012.
Legislation by the Enviromental Bereau introduced mandatory implementation of Building Energy Codes. Hong Kong's two power companies (Hong Kong Electric and China Light & Power) signed the Scheme of Control Agreement in 2008 which provide incentives for over-achieving the emission caps and penalties for under-achieving them.
$1 Billion was injected into the Environment and Conservation Fund, under which two funding schemes are set up:
• $150 million fund to subsidise carbon audits; and • $300 million used to subsidise energy efficiency projects in buildings.
22 Source: EIA, http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=HK
Asia Pacific Clean Tech Handbook 64 of 348 26-Apr-10 One very important aspect is Hong Kong's relationship with mainland China and its implication to renewable energy development. It is possible for Hong Kong to make use of the mainland's renewable energy resources to meet its energy need in an environmental friendly and sustainable way as HK’s electricity transmission system is interconnected with the Guangdong Province on the mainland.
3.6.5 Renewable Targets & Incentives In 2005 that the Hong Kong Government published it’s First Sustainable Development Strategy – setting a target of having one per cent to two per cent of Hong Kong’s total electricity supply met using renewable energy by 2012.
3.6.6 Research & Development The Environment and Conservation Fund (ECF) funds environmental research, technology demonstration and conference projects. Projects costing more than HKD$2Million (USD 250k) need to be approved by the ECF committee with lower cost projects approved by the respective sub-committees of the relevant field.
The development of renewable energy is an important element of developing the Pearl River Delta Region into a Green PRD Living Area, jointly promoted by Hong Kong and Guangdong. To create the Green PRD Living Area, both sides will examine how to strengthen research and development (R&D) as well as application of renewable energy.
The Shenzhen-Hong-Kong Innovation Circle was set up to promote technological collaboration between the two parties, also provides $35 Million (USD 4.5mm) funding for research projects.
3.6.7 Financing
Public Sector Funding The Hong Kong government announced plans to set up a HKD 300m (USD 38.6m) pilot Green Transport Fund to encourage environment-friendly vehicles. The announcement was made at a Legislative Council meeting for the budget proposals for the fiscal year 2010 to 2011.
Private Sector Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were 2 deals completed in 2009, totaling 87 million in Clean Technology. For more information, contact the Hong Kong Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there were no deals, associated with Clean Tecnology in Hong Kong in 2009.
Public Companies Most Clean Tech companies listed on the Hong Kong Stock Exchange are mainland Chinese companies. There were 13 companies listed, with a Market Capitalisation of $13.7 billion in 2009.
Asia Pacific Clean Tech Handbook 65 of 348 26-Apr-10 3.7 India 3.7.1 Background
India has a dedicated Ministry of New and Renewable Energy (MNRE). In 2009, India has put in place renewable targets including wind and solar.
Coal accounts for more than half of India’s total energy consumption followed by oil, which comprises 31% of total energy consumption. Natural gas and hydroelectric power account for 8 and 6% of consumption respectively. Although nuclear power comprises a very small percentage of total energy consumption at this time, it is expected to increase in light of recent international civil nuclear energy cooperation deals. According to the Indian government, 30% of India’s total energy needs are met through imports.
3.7.2 Market Size and Energy Mix
Primary Demand India’s Integrated Energy Policy says the country’s total power generation capacity should increase to nearly 800 GW from current capacity of 160 GW by 2032 to sustain an annual 8-10% economic growth.
Electricity Demand • In 2010, India is expected to have around 177GW of installed electric capacity and generated 863 billion kWh. • Majority of power in India is generated with conventional thermal sources, which is expected to account for around 65% of electricity in 2010. • Hydroelectricity has been a consistent source of power in India, and should account for nearly 26% of power generated in 2010. • Nuclear energy is expected to contribute 3% of electricity in 2010, while wind and other renewable sources will account for around 6%.
Asia Pacific Clean Tech Handbook 66 of 348 26-Apr-10
Gasoline/Diesel Demand
The Indian government continues to heavily subsidize prices of diesel and thus demand compared to gasoline has surged in the past few years.
The national biofuels policy was announced in December 2009 to target a minimum of 20% ethanol-blended petrol and diesel by 2017.23 In India ethanol is produced by the fermentation of molasses – a by-product of sugar manufacture. India is the fourth largest ethanol producer after Brazil, the United States and China, its average annual ethanol output amounting to 1,900 million litres with a distillation capacity of 2,900 million litres per year. For a 5 per cent ethanol blend in petrol nationally, the ethanol required would be 640 million litres of ethanol in 2006-2007 and 810 million litres in 2011-2012.24
3.7.3 Government Agencies • Ministry of New and Renewable Energy (MNRE) is responsible for managing one of the largest renewable energy programs, covering renewable energy technologies for a variety of
23 iGovernment Bureau, http://igovernment.in/site/India‐approves‐biofuel‐policy/
24 United Nations Conference on Trade and Development, 2006, “An Assessment of the Biofuels Industry in India” http://www.unctad.org/en/docs/ditcted20066_en.pdf
Asia Pacific Clean Tech Handbook 67 of 348 26-Apr-10 grid and off-grid applications. The country has the largest decentralized solar energy program, the second largest biogas and improved cooking stoves program, and the fifth largest wind power program in the world.
• Ministry of Petroleum and Natural Gas - The Ministry of Petroleum & Natural Gas is entrusted with the responsibility of exploration and production of oil and natural gas, their refining, distribution and marketing,import, export, and conservation of petroleum products and Liquified Natural Gas.
• Ministry of Rural Development - The Ministry has been acting as a catalyst effecting the change in rural areas through the implementation of wide spectrum of programmes which are aimed at poverty alleviation, employment generation, infrastructure development and social security. Over the years, with the experience gained, in the implementation of the programmes and in response to the felt needs of the poor, several programmes have been modified and new programmes have been introduced. This Ministry’s main objective is to alleviate rural poverty and ensure improved quality of life for the rural population especially those below the poverty line. These objectives are achieved through formulation, development and implementation of programmes relating to various spheres of rural life and activities, from income generation to environmental replenishment.
The major programs supported by the government include the following:
• Rural Energy, which includes biomass and energy efficiency sectors • Solar Energy • Power from Renewable Energy • Energy from Urban and Industrial wastes • Hydrogen Fuel Cells and Others new technologies 3.7.4 Renewable Regulation • 12th Five Year Plan (2012 to 2017).The draft is in formulation stage. No targets finalized yet.
The 11th Five Plan includes a 4-5% renewable target.
• Electricity Act (2003). Electricity Act in 2003 deregulates all types of power generation (except of hydroelectricity above 10 MW), it also includes 10% renewable target.
• National Electricity Policy (NEP). In 2005 the Government of India put out the National Electricity Policy as required by the Electricity Act of 2003. The National Electricity Policy outlines a plan for rural electrification increased generation capacity. The policy states that “maximum emphasis” would be put on the development of hydro power. Use of thermal power could be made cleaner by using low-ash coal, improving lignite mining, and increased use of natural gas and nuclear power. The policy also sets recommendations for improving the power grid with better transmission and distribution of power. It also calls for the use of the most efficient technologies and more funding for R&D.
Asia Pacific Clean Tech Handbook 68 of 348 26-Apr-10 • Energy Policy. The Energy policy outlines the challenges that India faces as it develops and must generate and provide increasing amounts of energy. Measures include addressing energy security by acquiring abundant supplies of coal and gas,and increasing hydro and nuclear power. India seeks to improve energy efficiency by reducing energy intensity across many sectors including mining, electricity distribution, transportation, industry and building construction. The policy also outlines methods to promote renewable energy and increase R&D.
The Energy Conservation Act in 2001 empowers the Central Government and State Governments to:
• specify energy consumption standards for notified equipment and appliances;
• direct mandatory display of label on notified equipment and appliances;
• prohibit manufacture, sale, purchase and import of notified equipment and appliances not conforming to energy consumption standards;
• notify energy intensive industries, other establishments, and commercial buildings as designated consumers;
• establish and prescribe energy consumption norms and standards for designated consumers
st The Bureau of Energy Efficiency (BEE) was established in 1 March, 2002 to implement the Act and drive through energy efficiency.
Regulatory Drivers Date Event
Regulatory Body
1998 The Central Electricity Regulatory Commission (CERC) was established in 1998
The State Electricity Regulatory Commission (SERC) serves as the electricity regulator for the individual states. All the states except Nagaland and Arunachal Pradesh have either constituted or notified SERCs
2006 Ministry for New and Renewable Energy (MNRE) formed (formerly Ministry of Non- Conventional Energy Sources)
2007 The Petroleum and Natural Gas Regulatory Board (PNGRB), was established on June 2007
The Chairperson and members of CERC are appointed by the Central Government on the recommendation of the Selection Committee. The Chairperson and members of SERC are appointed by the State Government on the recommendation of the Selection Committee. The members of the PNGRB are appointed by the central government.
Regulatory Framework
2009 National Solar Mission
Asia Pacific Clean Tech Handbook 69 of 348 26-Apr-10 2003 National Mission on Biodiesel
2003 The Electricity Act (2003) mandate SERCs to specify a percentage of energy to be procured from renewable energy sources
2001 The Energy Conservation Act (2001)
Regulatory Roles
CERC roles include regulation of tariffs for generation companies and promoting competition
SERCs roles include tariff regulation and promotion of cogeneration and electricity generation from renewable
Issues
Lack of a methodology for deciding the quotas and tariff for renewable generation under the Electricity Act 2003
3.7.5 Renewable Targets & Incentives • India does not have a carbon reduction target but has stated that it plans to cut its carbon intensity by 20% by 2020 from 2007 levels.
• The Indian government’s stated target is for renewable energy to contribute 10% of total power generation capacity by 2012.
• Solar. As part of the Solar Mission, India has revised its Solar PV target to 20GW by 2022.
• Wind. A target of 10.5 GW was proposed, as part of the 11th Plan. 10 out of the 29 Indian States have now implemented quotas for a renewable energy share of up to 10% and have introduced preferential tariffs for electricity produced from renewable sources. These states are Kerala, Rajasthan, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh, West Bengal, Gujarat and Haryana. In addition, several states have implemented fiscal and financial incentives for renewable energy generation, including: energy buy back schemes and FiTs; preferential grid connection and transportation charges and electricity tax exemptions.
• Hydro. As part of the 12th Five Year Plan (2012-17), the government has identified an additional 38,242MW to be added in that time period. Based on the 2005 Electricity Plan, India, the government expects to increase hydro capacity to 94,000 MW by 202725. A target of 1,400MW was proposed for the 11th Plan for small hydro.
25 India Central Electricity Authority
Asia Pacific Clean Tech Handbook 70 of 348 26-Apr-10 • Biomass. A target of 1,700MW was proposed through cogeneration by 2012, as part of the 11th Plan. In addition, a 400MW target was proposed for waste to energy projects in urban areas.
• Biofuels. India has announced a 20% indicative blending target for ethanol and biodiesel by 2017, but these are not firm targets.
• Nuclear. India plans to have 20,000 MW nuclear capacities on line by 2020.
India Renewable Targets Year 2008 2012 2017 2022 2027 (11th Plan) (12th Plan) (13th Plan) (14th Plan) Electricity Capacity 161GW* 195GW* 230GW* 263GW* 294GW* Electricity Generation 811TWh 966TWh* 1266TWh* 1466TWh* 1839TWh* Renewable Target 10% (power generation) Hydro 26% 94GW Small Hydro 1,400MW Nuclear 3% 20GW Wind 10GW 10.5GW Solar PV 0.2GW 1GW 4GW 20GW Solar Water Heating 140Mm2 Biomass 1,700MW Nuclear 20GW Bioethanol 5% in 9 20% states indicative blending target Biodiesel 20% blend 20% with indicative Jatropha blending target Source: Government Publications
Feed in Tariff (FiT) As part of the Electricity Act, the law encourages a 10% contribution from renewable energy in some regions. This is achieved through a Feed in Tariff, focused on Wind, Biomass and Small Hydro.
Tariff Rs/kWh $/MWh* Region Wind 2.90-4.08 63-89 Tamil Nadu, Haryana Biomass 2.63-4.00 57-87 Andhra Pradesh, Haryana Small Hydro 2.25-3.66 49-80 Madhya Pradesh, Punjab Source: Government Publications, * 1 USD=46 INR
Asia Pacific Clean Tech Handbook 71 of 348 26-Apr-10 3.7.6 Research & Development
Based on the Patent Filing research, India trails the North Asian countries, in terms of research & development. This is notable, in terms of patents filed by Indian companies compared with China, Japan, South Korea and Taiwan. This may put India at a significant disadvantage, in terms of setting up a high quality manufacturing sectors, required for Clean Technology sectors, such as solar and wind.
While the government has put in place promotional policies and programs, such as the NRSE, aimed at reducing costs and enhancing efficiency, it will be interesting to see, if will be able to make up the technological gaps with its North Asian neighbours. Notable actions to close this technological gap, include:
• Engaged with leading research organizations in the country to undertake R&D projects, accompanied by three specialized technical institutes (SDC, C-WET and the SSSNIRE). • Provided a market-oriented thrust to R&D efforts and has evolved a policy of supporting R&D with the involvement of the industry. • Established an R&D Advisory Committee that considers specific proposals for research and also recommends research priorities and strategies. • The MNES also facilitates the acquisition of patents in the area of renewable technology.
The IREDA is the promotional and financing arm of the Ministry and has emerged as one of the main instruments for promoting developing and financing technologies and projects related to NRSE (renewable sources of energy).
It has been able to tie up funds from leading multilateral agencies such as the UN organizations, the Asian Development Bank and the European Commission, bilateral organizations and domestic financial institutions for lending to end-users, manufacturers, financial intermediaries and entrepreneurs, predominantly in the private sector.
Cumulative loan disbursements by IREDA have risen from around Rs 16 million (USD 360k) in its first year (87-88) to Rs 25,478 million (USD 571 mm) in December 2001, while cumulative sanctions touched Rs 50,447 million (USD 1.1 bn).
In addition, major national financial institutions such as the IDBI, ICICI, IFCI, and PFC have also been financing wind power projects.
3.7.7 Financing
Public Funding y The IREDA is the promotional and financing arm of the Ministry and has emerged as one of the main instruments for promoting developing and financing technologies and projects related to NRSE (renewable sources of energy).
Asia Pacific Clean Tech Handbook 72 of 348 26-Apr-10 y It has been able to tie up funds from leading multilateral agencies such as the UN organizations, the Asian Development Bank and the European Commission, bilateral organizations and domestic financial institutions for lending to end-users, manufacturers, financial intermediaries and entrepreneurs, predominantly in the private sector. y Cumulative loan disbursements by IREDA have risen from around Rs 16 million in its first year (87-88) to Rs 25478 million in December 2001, while cumulative sanctions touched Rs 50447 million. y In addition, major national financial institutions such as the IDBI, ICICI, IFCI, and PFC have also been financing wind power projects. y Suzlon Energy Limited, the world's fifth leading wind turbine maker, entered into a Memorandum of Understanding (MOU) with TERI University for setting up and offering an MTech Programme in Renewable Energy Engineering and Management. y This MOU will facilitate Suzlon Energy to contribute to the Programme through exchange of ideas and expertise, and guest faculty.
Private Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were 2 deals completed in 2009, totaling 87 million in Clean Technology. For more information, contact the India Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there were 9 deals totallig $792 million, associated with Clean Technology in Indai g in 2009.
Public Companies Most Clean Tech companies listed on the Bombay Stock Exchange (BSE). There were 14 companies listed, with a Market Capitalisation of $15.5 billion in 2009.
Asia Pacific Clean Tech Handbook 73 of 348 26-Apr-10 Figure 3.8 - India Private Sector Funding
261M $18.9B $15.5B
VC/PE Deals 208M 13.2B Project Financing Deals Market Cap/Companies $11.3B
147M
134M $6.5B
24 Deals 19 Deals
$2.7B 14 Companies 16 Deals 13 Deals 8 Deals 11 Companies 9 Companies 9 Deals 10 Companies 9 Deals 23M 9 Companies 5 Deals 0.9B 0.8B 1 Deal 0.8B
2005 2006 2007 2008 2009
Source: Thomson Reuters
3.8 Singapore 3.8.1 Background Singapore is trying to establish itself as a Clean Tech hub for Asia. While, it does not have its own domestic market, it wants to be a leader in research, capital raising and the headquarters for companies looking to set up and expand across Asia.
Singapore has embarked on a comprehensive and ambitious program to become a Clean Tech hub for Asia. Through the Economic Development Board (EDB), it has allocated SGD$1 billion, as part of its Sustainable Blueprint for 2030 to make 80% of all buildings green, 35% reduction in energy intensity and launch of a solar test bed program.
In addition, it has set aside SGD$650M/USD485M in Clean Energy (SGD$350M/USD250M) and environment and water (SGD$330M/USD235M).
It has launched a number of Clean Tech incubators at NUS and NTU. While Singapore lacks the size and scale of other countries, it aims to be the Clean Tech hub for Asia, in terms of financing and setting up Clean Tech companies and become a test bed for new technologies.
Asia Pacific Clean Tech Handbook 74 of 348 26-Apr-10 3.8.2 Market Size & Energy Mix Singapore incinerates 90% of its Municipal Solid Waste through 4 incineration plants and generates roughly 980 kWh of energy, supplying roughly 2% of Singapore’s electricity demand. Power Generation in Singapore was 39TWh26
3.8.3 Government Agencies The key government agencies involved in Clean Technology includes:
• Ministry of Environment and Water Resources (MEWR) – manages water and environmental sustainability. • Ministry of National Development (MND) – responsible for providing quality physical infrastructure by working in the public and private sectors. • Economic Development Board (EDB) - is responsible for planning and executing strategies to enhance Singapore’s position as a global business centre and grow the Singapore economy. • National Research Foundation (NRF) - The National R&D Agenda consists of five strategic thrusts, namely: to intensify national R&D spending to achieve 3% of GDP by 2010; to identify and invest in strategic areas of R&D; to fund a balance of basic and applied research within strategic areas; to provide resources and support to encourage private sector R&D; and to strengthen linkages between public and private sector R&D. • Energy Market Authority (EMA) - is a statutory board under the Ministry of Trade and Industry. Its main goals are to promote effective competition in the energy market, ensure a reliable and secure energy supply, and develop a dynamic energy sector in Singapore. • National Environment Agency (NEA)- is the leading public organization responsible for improving and sustaining a clean and green environment in Singapore. • Building and Construction Authority (BCA) - is an agency under the Ministry of National Development, championing the development of buildings, structures and infrastructure for Singapore. • National Climate Change Committee (NCCC) ‐ the Ministry of the Environment and Water Resources (MEWR) formed the National Energy Efficiency Committee (NEEC). With the announcement of Singapore’s plan to accede to the Kyoto Protocol in 2006, the NEEC has been expanded in scope to cover climate change issues and has been renamed the NCCC to better reflect its expanded function.
3.8.4 Clean Technology Regulations • The National Technology Plan, 2010, (including EE&C, establishment of national standards) – earmarks SGD 75bn/USD 54bn for science and technology R&D over the coming 5 years, with potential for research into Clean Tech.
26 EIA
Asia Pacific Clean Tech Handbook 75 of 348 26-Apr-10 • The Singapore Green Plan (including EE&C to reduce pollutants) – MEWR promotes a high quality environment with targets for the following areas: Air and Climate Change, Water, Waste Management, Nature, Public Health and International Environmental Relations.
• Energy Conservation and Distribution Centre to prepare the public towards energy efficient lifestyle.
• Energy Audit Scheme - is implemented by the NEA in partnership with major industrial consumers under the initiative of the NCCC. The Scheme is voluntary, designed to provide an impetus for industries to improve the energy efficiency of their operations. Its objective is to encourage industries that use large amount of oil and gas to put in place a formal system for the management of energy use, to improve their energy efficiency. Under the Scheme, companies can either use in-house staff or engage external energy audit specialists in carrying out their energy audits. Such audits, which are carried out every 3-5 years, would help industries to systematically identify opportunities for improving energy efficiency regularly. The companies could then take measures to improve the energy efficiency of their facilities.
3.8.5 Renewable Targets & Incentives
Clean Energy • Clean Energy Research and Testbedding Program (CERT). The Clean Energy Research and Testbedding Program (CERT) by the Clean Energy Program Office (CEPO) and managed by EDB, is a SGD$17M (USD12M) funding initiative for local and foreign companies and organisations to test and implement clean energy technologies at suitable sites. CERT involves three key partners: the R&D organisations, the technology providers, and the implementers. These three partners are involve in the following areas (obtained from the CERT press release): The R&D organisations will lead and conduct testbedding activities, while the technology providers will be private sector companies providing the Clean Energy equipment and technologies to participate in the testbedding. Government agencies which are providing the testbedding location and facilitating the project are the implementers.
• Clean Energy Research Program (CERP). The Clean Energy Research Program (CERP) by the National Research Foundation (NRF) is a SGD$50M (USD35M) funding initiative for Institutes of Higher Learning, public sector agencies, private companies based in Singapore, and not-for-profit research laboratories, to conduct research and development projects in clean energy. The R&D projects are submitted based on calls for proposals in domains specified by the Clean Energy Program Office (CEPO). Funding support is up to 70% or 100% of approved direct qualifying costs of a project.
• Solar Capability Scheme (SCS). Under the Solar Capability Scheme (SCS), EDB provides funding for new private buildings to install solar technologies. The building must be certified with minimum Green Mark Gold rating by BCA, and the minimum solar system installed should be 10 kW. The funding provided is between 30% to 40% of the total capital cost and capped at $1 million.
Asia Pacific Clean Tech Handbook 76 of 348 26-Apr-10 • Market Development Fund is a $5 million funding initiative by the Energy Market Authority to help in the test-bedding of new electricity generation technologies such as solar, wind, hydrogen and fuel cell, which has significant potential and value in the electricity market.
• Energy Research Development Fund. The EMA has launched a S$25 million Energy Research Development Fund (ERDF) to be disbursed over five years to drive research, development and demonstration initiatives to address issues pertaining to Singapore’s energy sector such as energy security, energy efficiency and the development of a competitive energy industry in Singapore. The ERDF is targeted at a wider spectrum of projects that can include solutions to optimise grid operations, enhance energy efficiency in Singapore’s industries or facilitate the entry of new sources of fuel into Singapore. The EMA has also recently set up a S$5 million Market Development Fund (MDF) to encourage the adoption of renewable energy solutions. The MDF will help to offset the market charges associated with selling renewable energy into the electricity grid.
Energy Efficiency The National Environment Agency (NEA) has put in place a number of energy efficiency initiatives, aimed at promoting energy efficiency among business and the public sector. These initiatives are estimated to reduce up to 190,000 tonnes of carbon dioxide emissions by 2012 and help achieve the target of 25% improvement in carbon intensity between 1990 and 2012 (NEA 2005):
• Energy Efficiency Improvement Assistance Scheme (EASe). NEA provides a co-funding scheme called the Energy Efficiency Improvement Assistance Scheme (EASe), to help companies in the manufacturing and building sectors engage accredited Energy Services Companies (ESCOs) to conduct energy audits and recommend energy saving measures. Funding is provided up to 50% of the qualifying costs of engaging an ESCO and capped at $200,000 for a single facility or building over a five-year period.
• Grant for Energy Efficient Technologies (GREET). The Grant for Energy Efficient Technologies (GREET) by NEA provides funding for the Singapore-registered owner or operator of existing or proposed industrial facilities to invest in energy efficient equipment or technologies. Funding is provided up to 50% of the qualifying costs and capped at $2 million per project. Only projects with a payback of more than 3 years and up to 7 years are eligible for funding.
• Accelerated Depreciation Tax Allowance. The Accelerated Depreciation Tax Allowance scheme by NEA encourages companies to replace old inefficient equipment and invest in energy saving equipment. The capital expenditure on the qualifying energy efficient equipment can be written off in one year instead of three.
• Design for Efficiency Scheme (DfE). The Design for Efficiency Scheme (DfE) by NEA aims to encourage new facilities that are large consumers of energy to integrate energy and resource efficiency improvements into their development plans early in the design stage. Funding is provided up to 80% of the qualifying costs or S$600,000, whichever is lower.
Asia Pacific Clean Tech Handbook 77 of 348 26-Apr-10 • SCEM Training Grant. The Singapore Certified Energy Manager (SCEM) Program offers training and certification in energy management, and is for engineering professionals to develop the technical skills and competence to become the Energy Managers of their organisations. The SCEM Training Grant is a co-funding scheme by NEA to fund the training cost at the Professional Level SCEM Program. Successful grant applicants only pay a subsidised course fee of SGD$963 instead of the full course fee of SGD$5,885.
Smart Grid The Energy Market Authority (EMA) promotes competition in the electricity and piped gas industry and maintains the security and reliability of the power system. Formed on 1st April 2001, EMA is a statutory board under the Ministry of Trade and Industry that regulates the electricity and gas industry and district cooling services in designated areas. The EMA has worked on details of the electricity sector privatisation, as well as efforts to maintain a secure and reliable electricity industry.
Green Buildings Green Mark Incentive Scheme for Existing Buildings (GMIS-EB). The government recently announced in the Sustainable Singapore blueprint that it has set a target for 80% of the existing building stock to achieve at least Green Mark Certified rating by 2030. A $100 million Green Mark Incentive Scheme for Existing Buildings (GMIS-EB) was set up by BCA to hencourage private building owners of existing buildings to undertake improvements in energy efficiency. The scheme provides a cash incentive that co-funds up to 35% of the costs for energy efficiency improvements and capped at SGD$1.5 M (US$1.1M).
Green Mark Incentive Scheme for New Buildings (GMIS-NB). The enhanced $20 M (SGD14M) Green Mark Incentive Scheme for New Buildings (GMIS-NB) by BCA is to accelerate the adoption of green building technologies and design practices. The enhanced scheme provides cash incentives to developers, building owners, project architects and M&E engineers, who achieve at least a BCA Green Mark Gold rating in the design and construction of new buildings.
Green Mark Gross Floor Area Incentive Scheme (GM-GFA). The Green Mark Gross Floor Area Incentive Scheme (GM-GFA) by BCA and URA is to encourage the private sector to develop buildings that attain the higher Green Mark ratings. URA will grant additional floor area over and above the Master Plan Gross Plot Ratio (GPR) control, up to 1% for Green Mark Gold Plus developments and up to 2% for Green Mark Platinum developments, and subject to a cap of 2,500 m2 for Gold Plus and 5,000 m2 for Platinum.
MND Research Fund for the Built Environment. The MND Research Fund for the Built Environment is a SGD$50M (USD35M) funding initiative by the Ministry of National Development (MND) and managed by BCA. The objective of the fund is: To encourage and support applied R&D that will raise the quality of life and make Singapore a distinctive global city. Under the MND Research Fund, some key focus areas include sustainable development projects such as integrating solar technologies into building facades. The fund covers 30% to 75% of the qualifying cost of the project, subject to a cap of SGD$2M (USD1.4M).
Asia Pacific Clean Tech Handbook 78 of 348 26-Apr-10 3.8.6 Research & Development • Fuel Cells - Institute of Materials Research and Engineering, the Institute of Chemical and Engineering Sciences, the Institute of High Performance Computing and the Singapore Institute for Manufacturing Technologies
• Solar Energy - The Solar Energy Research Institute of Singapore at the National University of Singapore (NUS) focuses on research in silicon PV technology, nano-structured solar cells and energy efficient buildings.
• The Centre for Sustainable Energy Research, through its Energy Research Institute at Nanyang Technological University (NTU), conducts research on advanced fuel cell technology, charge storage, wind and tidal energy and smart buildings.
3.7.7 Financing
Government Funding Research institutes under the Agency for Science, Technology and Research (A*STAR) have established research programs in various areas including fuel cells, biofuels, next generation solar PV technology, carbon management and intelligent energy distribution systems.
Private Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were 2 deals completed in 2009, totaling $13.5 million in Clean Technology. For more information, contact the Singapore Venture Capital Association (SVCA).
Project Finance According to Thomson Reuters Project Finance Database, there was 1 deal totaling $350 million, associated with a PV Solar project in Singapore in 2009.
Public Companies Most Clean Tech companies listed on the Singapore Stock Exchange are associated with wastewater companies. There were 12 companies, with a Market Capitalisation of $1.5 billion in 2009.
Asia Pacific Clean Tech Handbook 79 of 348 26-Apr-10 3.9 Indonesia 3.9.1 Background Indonesia is the largest country in ASEAN with a population of over 200 million people spread over 13,000 islands. The country has no unified grids, other than the three islands of Java, Bali and Madura. PT PLN (Persero) is the main player‐fully integrated utility with generation, distribution and transmission all under one umbrella. The government announced the 2nd phase of its 10GW of newly installed total capacity program by 2014. 4,733MW of this target has been set aside for geothermal projects. The government will offer most of these projects to private investors. As of 2009, 1,057MW of geothermal capacity has been installed.
3.9.2 Market Size & Energy Mix Based on the IEA 2009 outlook, Indonesia’s primary energy demand is expected to increase from 191 Mtoe to 330 Mtoe in 2030.
Total installed power capacity is projected to increase almost three-fold, from 35 GW in 2007 to 101 GW in 2030.
3.9.3 Government Agencies • Ministry of Energy and Mineral Resources (MEMR) is the body responsible for the development of Indonesia’s energy policy. Under the National Energy Policy, which was introduced in 2006, a target has been set to reduce the share of oil in the fuel mix to below 20% and to increase that of renewables to 17%, both by 2025. The MEMR tendered three
Asia Pacific Clean Tech Handbook 80 of 348 26-Apr-10 projects: 220MW Tangkuban Perahu (awarded to Raser Technologies); 45MW Cisolok Sukarame; and 50MW Tampomas.
3.9.4 Clean Technology Regulation • In 2007, Indonesia enacted the Energy Law, which is the country’s first legislation on energy. Under the new law, the government gives priority to improving energy efficiency and increasing renewable energy development to enhance energy security and improve access to modern energy services.
• Renewable Energy Law. The Indonesian government is drafting a law on new and renewable energy, which includes plans for both supply and demand, and the use of fiscal incentives.
• National Energy Policy. In its national energy policy for 2005-2020, the Indonesian government aims to increase energy efficient, promote renewables, implement demand side management and use cleaner fuels.
3.9.5 Renewable Targets Indonesia announced the 10,000 MW Crash Program Phase II in 2008, which aims to increase renewable generating capacity, particularly from geothermal and hydropower. Targets have been set to boost the capacity of micro-hydro power plants to 2.9 GW by 2025, geothermal plants to 9.5 GW by 2025, wind power to 0.97 GW by 2025, solar power to 0.87 GW by 2024 and biomass to 180 MW by 2020.
Since January 2009, the transport, industry and power-generation sectors and fuel distributors in Indonesia have been obliged to use biofuel blends. The government has set the goal that biofuels should contribute 3% of the energy mix by 2015 and 5% by 2025. To boost the development of biomass, the Indonesian government plans to open 6 million hectares of new plantation area for sugar cane, cassava, palm and jatropha by 2025.
Indonesia Renewable Targets Year 2008 2015 2025 2030 Electricity Capacity 35GW 101GW Electricity Generation 151TWh 279TWh 290TWh 440TWh Renewable Target 15.5% 17% Hydro 3.2GW 2.9GW Geothermal 9.5GW
Wind 0.97GW
Solar PV 0.87GW
Biomass 180MW Bioethanol 3% 5% Biodiesel 3% 5%
Source: Government Publications, EIA, IEA, Estimates
Asia Pacific Clean Tech Handbook 81 of 348 26-Apr-10 Indonesia is now focused in three renewable areas: geothermal, small hydro and biomass.
The Indonesian government has unveiled a USD 255m stimulus package for the oil, gas and geothermal sectors. It is part of a wider USD 4.6bn package to help the country cope with the economic crisis. The package will operate for the 2009 fiscal year.
Two recent regulations have detailed the electricity tariffs for geothermal power plants, based on capacity:
• Plants greater than 55MW will receive 85% of PLN’s production cost; • Plants from 10MW to 55MW will receiver 80%; and • Plants smaller than 10MW will be dealt with in a separate regulation
Barriers to growth in geothermal still remain, due to issues in the bidding process that does not have a standardized Power Purchase Agreement (PPA) and limited contractual obligations for the winning bidder that may result in long drawn out negotiation after the award of the contract.
The Geothermal law has shifted the burden onto the provincial governments to confirm the size of geothermal resources, which may lack the investment or technical expertise to identify the resources. High start up costs also deters development, as it is difficult to determine the capacity over a 20 to 30 year period to recoup the initial investment.
Feed in Tariffs (FiT) MEMR announced in August 2009 that PLN will set a ceiling on rates to encourage investment by resolving tariff uncertainties, which were reported to be between 6.5 and 7 US cents/kWh for renewable energy.
3.9.6 Research & Development The Ministry of Energy and Mineral Resources is undertaking research in Clean Coal Technology.
The Bandung Institute of Technology (ITB), Bogor Institute of Agriculture (IPB), the Research and Development Division of the Ministry of Energy and Mineral Resources are amongst the scientific institutions that signed the Memoranda of Understanding to support biofuels projects in Indonesia.
3.9.7 Financing
Public Sector Funding The government is planning to launch a USD 1bn investment fund for clean energy projects. The country's sovereign wealth fund, the Government Investment Unit will contribute 10% to the fund, and the remainder will be raised from institutional investors and other governments, including the US, Australia, Japan, France, Norway that has shown interest. Indonesia has set a target of cutting greenhouse gas emissions by 26% by 2020. The fund will be launched later in 2010. The fund will co-invest in projects with banks. It will invest no more tan USD80m per project.
Asia Pacific Clean Tech Handbook 82 of 348 26-Apr-10 Sumitomo Mitsui Financial Group has signed an agreement with the World Bank and the US Agency for International Development to advise Indonesia on funding renewable energy projects as the country plans to boost power generation.
Private Sector Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there was only 1 deal completed in 2009, totaling 45 million in Clean Technology. For more information, contact the Singapore Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there were 4 projects totaling $513 million, associated with Clean Technology in Indonesia in 2009.
Public Companies According to the Indonesia Stock Exchange, there is only 1 companies listed in Clean Technology, with a Market Capitalisation of $43 million.
3.10 Malaysia 3.10.1 Background Malaysia is one of the largest producers of palm oil and exports this as a biofuel to European markets. The Malaysian government said it will rely on biogas, solar, mini hydro and biomass as its main sources for renewable energy.
The government went on to say that it is finalising a program to push for the development of these sources of renewable energy. It wants private firms to help in the deployment of renewable energy.
3.10.2 Market Size & Energy Mix
Primary Energy Demand Based on the IEA 2009 Outlook, Malaysia’s primary energy demand is expected to increase from 73 Mtoe to 116 Mtoe in 2030.
Electricity Demand Total installed power capacity is projected to increase from 26 GW in 2007 to 47 GW in 2030.
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3.10.3 Government Agencies • The Economic Planning Unit (EPU) and the Implementation and Coordination Unit (ICU) devise and oversee all energy policy in Malaysia.
• Ministry of Energy, Water and Communications, which regulates the non-oil and gas and electricity sectors.
• The Energy Commission of Malaysia regulates energy supply activities and enforces energy supply laws.
3.10.4 Clean Technology Regulation • National Energy Plan. Malaysia is currently in the process of formulating a comprehensive National Energy Plan, which will focus on intensifying energy-efficiency initiatives in order to achieve more productive and prudent use of its remaining reserves. The plan, will increase efforts to develop alternative forms of energy, including solar, wind and biofuels, and will explore the possible use of nuclear energy.
• Electricity Supply Act. This Act regulates the licensing of electricity generation, transmission and distribution. It enforces licensing and registration provisions.
• Ninth Malaysia Plan (2006-2010), the government has set a target of 350MW of grid- connected renewable electricity generation by 2010. Currently, the Small Renewable Energy Power Program (SREP), which was launched in 2001, provides for power generated from renewable resources to access the national grid. SREP developers can sell power to utilities
Asia Pacific Clean Tech Handbook 84 of 348 26-Apr-10 through the Renewable Energy Power Purchase Agreement (REPPA), which gives plants a license for a period of 21 years to sell up to 10 MW to the national grid system. Under this program, the utilisation of all types of renewable energy is permitted, including biomass, biogas, municipal solid waste, solar, small hydropower and wind.
In 2008, the Malaysian government introduced a broad package of reforms to energy subsidies, which were creating a mounting fiscal burden. The package included subsidy reductions, cash rebates, windfall taxation on certain sectors and an expansion of the social safety net. Malaysian retail gasoline prices were increased by more than 40% in July 2008 and the following month the price of gas for power generation was raised by 124% in Peninsular Malaysia. In line with this increase in the gas price, the average electricity tariff for all sectors of the economy was increased by 24% (from $0.075/kWh to $0.093/kWh).
Malaysia introduced a Five-Fuel Diversification Policy in 2001, which aims to broaden the fuel mix and increase the share of renewables in the supply of electricity. As a result, oil’s dominance in the power-generation fuel mix has been reduced significantly, in favour of natural gas and coal. To ensure adequate, secure and cost-effective energy supplies, the Malaysian government formulated a National Depletion Policy in 1981. The policy sets a limit on the total production of crude oil of 650 kb/d and natural gas from Peninsular Malaysia of 56.6 million cubic metres per day.
3.10.5 Renewable Targets & Incentives Malaysia is still drafting its Renewable Energy legislation and aims to derive 5% of its energy needs from renewable sources by 2050, excluding hydro.
The only other areas of targets is in biofuels, as part of the Five Fuel Diversification, ppromotion of a 5%-mix of processed palm oil with petroleum diesel (B5 diesel) on a trial basis on a fleet of government vehicles.
Malaysia’s Renewable Targets Year 2008 2010 2020 2030 Electricity Capacity 26GW 47GW Electricity Generation 107TWh 110TWh* 150TWh* 216TWh* Renewable Target 350MW Source: EIA, Government Publications, Estimates
Feed in Tariffs The Malaysian government is planning to introduce legalisation to make it mandatory for state utility Tenaga Nasional to buy clean energy. The aim of the legislation is for Malaysia to have 2GW of installed capacity by 2020, from the modest 50MW in place currently. A committee is currently drafting legislation to accord greater importance to the role of clean energy. The legislation will have a RPS and mandatory feed-in tariffs (FiT).
State utility Tenaga Nasional Bhd has been paying a rate of USD 6 cents/kWh for renewable energy projects, most of which have been biomass projects. However, this is still considered an
Asia Pacific Clean Tech Handbook 85 of 348 26-Apr-10 'informal' rate, and is not an official rate. The government plans would introduce a mandatory FiT which will be higher than this.
3.10.6 Research & Development It was announced in January 2010 that Masdar and 1Malaysia Development Berhad (1MDB) would explore Clean Technology projects and investments, including the possibility of building Malaysia’s first carbon-neutral city. Masdar and 1MDB also intend to co-operate and invest in carbon reduction projects, under the Kyoto Protocol’s CDM and Clean Technology venture capital. If fully implemented the cooperation agreement would lead to the development of new catalytic projects, with an estimated value of USD100 million.
• Palm Oil Research Institute Malaysia (PORIM), established by law in 1979, is funded mainly from a research tax from palm oil millers, which brings in 70 million ringitts every year. The Malaysian Board of PORIM includes representatives from the palm oil industry and the government, is advised on the research programmes of the institute by a Programme Advisory Committee formed by experts in their own fields.
3.10.7 Financing
Public Sector Funding The Malaysian government is implementing a MYR 1.5bn (USD 437m) loan scheme for companies that use clean energy technologies.
The government is targeting biodiesel and biogas plant contractors, oil palm millers installing greenhouse gas capture tanks and biodiesel plant owners for the bulk of the loans.
The scheme is part of the government's 2010 budget and will be implemented together with commercial banks. Suppliers of green technology can borrow up to RM50m (USD 14.6m), while their clients are eligible to take a maximum loan of RM10m (USD 2.9m).
The loans, of which the government will bear 2% of the total interest rate, will be offered from January. The government will also guarantee 60% of the loan amount.
Separately, the government has launched its Incentives for Renewable Energy and Energy Efficiency in Malaysia. The scheme, applications for which will be accepted until 2010, will provide a 10-year income tax break for renewable energy businesses. There is also a full tax allowance on qualifying five-year capital expenditure. Unused allowances can be carried forward until fully absorbed.
Private Sector Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were no deals completed in 2009 in Clean Technology. For more information, contact the Malaysian Venture Capital Association.
Asia Pacific Clean Tech Handbook 86 of 348 26-Apr-10 Project Finance According to Thomson Reuters Project Finance Database, there were no projects associated with Clean Technology in Malaysia in 2009.
Public Companies Most Clean Tech companies listed on Bursa Malaysia are associated with Palm Oil and Biofuels. There were 6 companies, with a Market Capitalisation of $530 million in 2009.
3.11 Philippines 3.11.1 Background The Philippine government enacted the Renewable Energy (RE) Act in 2008, a far reaching renewable energy policy in South East Asia at the time.
The Philippines’ Department of Energy (DoE) awarded:
• 87 contracts to 18 companies in November 2009 to invest a total of P90.4 billion (US$ 1.9 billion). Contracts included biomass, geothermal, solar, hydropower, ocean, and wind energy resources, and could generate 4 GW of power. A total of 57 projects involved hydropower development. • A further 26 contracts were awarded in early 2010, with an investment of USD 278m in investment for small hydro, marine, wind, geothermal and biomass.
The total number of contracts awarded since the government implemented the Renewable Energy Act of 2008, is 180.
The new contracts signed included developments for small hydro, marine, wind, geothermal and biomass. The contracts were awarded to Bell Pirie Power, Clean Rock Renewable Energy Resources, Energy Development Corporation, Green Power Panay, Natural Power Sources Integration, Pan Pacific Power, PNOC-Renewables, Phil-Korean Energy, SKI Construction Group and SKI Mini-Hydro.
3.11.2 Market Size & Energy Mix The primary energy demand in the Philippines is projected to grow from 40 Mtoe in 2007 to 73 Mtoe by 2030.
Electricity demand is projected to grow from 15.7 GW in 2008 to 34.3GW in 2030, with a large proportion of renewables.
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3.11.3 Government Agencies • Environmental Management Bureau (EMB) – part of the Department of Environment and Natural Resources, focussed on air quality management, chemicals management, environmental impact assessment, hazardous waste management, solid waste management and water quality management. • Department of Energy (DOE) is the lead agency to implement the Renewal Energy Act. The department is focussed on energy independence and implementing market reforms outlined in the Philippine Energy Plan (2005-2014) • National Renewable Energy Board (NREB) oversees the implementation of the Renewable Energy Act. Key roles: o Recommend the mandated Renewable Portfolio Standards and minimum generation capacities in off-grid areas o Recommend actions and implementation of the National Renewable Energy Program o Oversee the implementation of the RE Trust Fund– finance research, development, demonstration o and promotion of RE sources for power and non-power applications27
27 ADB: http://www.adb.org/documents/events/2009/CCEWeek/Presentation‐Vincent‐Perez‐Energy‐PHI.pdf
Asia Pacific Clean Tech Handbook 88 of 348 26-Apr-10 • Energy Regulatory Commission (ERC) - protects long-term consumer interests in terms of quality, reliability and reasonable pricing of a sustainable supply of electricity.
3.11.4 Renewable Regulation • Renewable Energy Act (RE Act). The RE Act establishes a regulatory structure for the renewable energy industry. The Implementing Rules & Regulation (IRR) appoints the Department of Energy (DOE) to implement the RE Act. The National Renewable Energy Board (NREB) oversees the implementation of the RE Act. The Renewable Energy Management Bureau (REMB) is charged with disseminating information, research and monitoring of policies outlined in RE Act.
The IRR states key policies, timeframes for the completion. Detailed rules will be formulated, reviewed and enacted in one year of the passage of RE Act. Key policies include:
• Creation of renewable portfolio standards (RPS) that obliges generators and utilities to source or produce a percentage of power from renewables • Establishment of Feed in Tariffs and certain privileges for generators for at least 12 years • Development of a net metering scheme that allows end users to connect and supply to the grid • Formation of a renewable energy market for RE Certificates
Incentives Incentives include:
• 7 year income tax exemption for new or existing projects, from start of commercial operations. • Duty free import of machinery and equipment required for the project for 10 years from registration of the project • Realty tax of 1.5% on Net Book Value of construction works, equipment, machinery • Carry over of net operating loss from the first 3 years of commercial operations • Corporate tax rate of 10% after expiration of tax exemption • Projects not receiving tax exemption before full operations, receive accelerated depreciation at twice the rate • 0% value added tax on sale of power • Tax free sale of carbon credits • Tax credit equivalent to 100% of VAT and customs that would have been paid of machinery and equipment
The IRR states that all energy is owned by the state and that each developer will enter into a RE contract with the government and be granted exclusive rights to develop a designated area for a specified period of time. The RE contract will be up to 25 years and cover pre-development and development. The government will receiver 1% (1.5% for geothermal) of gross income received by the developers. This share is split 60% to the National government and 40% to the local government. Biomass projects or small projects less than 100kW do not apply.
The RE Act is expected to be enacted within 2010.
Asia Pacific Clean Tech Handbook 89 of 348 26-Apr-10 • Biofuels Act of 2006. Republic Act 9367 signed into law a mandatory biofuels standard which requires a 5% ethanol blend for gasoline within two years, increasing to 10% within four years under the approval of a new National Biofuels Board. A 1% biodiesel blend for diesel is required within 3 months, to be increased to 2% within two years. The amount of bioethanol in gasoline would be increased to 10% four years after the law is passed as determined and recommended by the National Biofuels Board. RA 9367 also zero-rates the specific tax on the biofuels component of blended gasoline or diesel.
3.11.5 Renewable Targets & Incentives From a current 4,500 MW capacity from renewable energy, the DoE is looking at doubling the figure to 9,000 MW in the next 10 years (2020), mainly from hydro, geothermal and biomass projects.
• The Philippines Energy Plan (PEP). The Philippines Department of Energy has identified long-term goals for RE development, namely: (i) increase RE-based capacity by 100% by 2013; and (ii) increase non-power contribution of RE to the energy mix by 10 MMBFOE in the next years 2003-2012. In support of these general goals, the government shall aim to (i) be the number one geothermal energy producer in the world; (ii) be the number one wind energy producer in Southeast Asia; (iii) double hydro capacity by 2013; and (iv) expand contribution of biomass, solar and ocean energy by about 131 MW. These goals serve as concrete benchmarks for government to advance its vision of a sustainable energy system with RE taking a prominent role in the process.
Philippines Renewable Targets Year 2008 2010 2020 2030 Electricity Generation 58TWh 70TWh* 115TWh* 129TWh* Renewable Target 4.5GW 9GW Hydro 2.4GW 3GW Nuclear 600MW in 2025 2400MW in 2030
Bioethanol 5% Biodiesel 2%
Source: EIA, CARMA, Government Publications, Estimates
Feed in Tariffs The Philippine government said it is planning to have feed-in tariff program for clean energy projects in place by June 2010. The NREB, which is advising the government on the country's renewable energy policy and framework, said it has started to study the FIT and will submit its proposal to the Energy Regulatory Commission proposals for the scheme by April 2010.
The ERC will then hold public consultations, on the FIT and a planned renewable portfolio standard, both of which are part of the Renewable Energy Law. The NREB said hopes the FIT will be implemented by June 2010, a year after the signing of the implementing rules and regulations governing the Renewable Energy Law.
Asia Pacific Clean Tech Handbook 90 of 348 26-Apr-10 Under the law, the ERC will, in consultation with the NREB, develop the FiT for different types of renewable sources of energy within a year from the implementation of the renewable energy law (in 2009).
3.11.6 Research & Development The Philippine Council for Industry and Energy Research and Development (PCIERD) plays a key role in the implementation of the Biofuels Law as the agency responsible for the development and implementation of an R&D program supporting a sustainable improvement in biofuel production and utilization technology. The PCIERD through the Industrial Technology Development Institute (ITDI) is currently testing the Jathropa methyl ester in cooperation with the Philippine National Oil Company (PNOC). Sweet sorghum is also being studied as possible alternative to sugarcane for bioethanol production. These alternative energy sources are being pursued due to the availability of raw materials and more importantly, they reduce vehicle emission of particulate matter, unburned hydrocarbons, carbon monoxide, among other things and improve the fuel efficiency of vehicles.
3.11.7 Financing
Public Sector Funding • The Philippines” Department of Energy (DoE) awarded 87 contracts to 18 companies to harness renewable energy in November 2009 to invest a total of P90.4 billion (US$ 1.9 billion). Companies given contracts were: Deep Ocean Power Philippines, Inc.; Trans-Asia Renewable Energy Corp.; Constellation Energy Corp; Century Peak Energy Corp.; PNOC- Renewables Corp.; Energy Development Corp.; First Gen Bukidnon Power Corp.; Luzon Hydro Corp.; Lucky PPH International, Inc.; First Gen Mindanao Hydro Power Corp.; AV Garcia Power Systems Corp.; Benguet Electric Cooperative, Inc.; Alternergy Philippine Holdings Corp.; DOST-Industrial Technology Development Institute; Unisan Biogen, Corp.; AP Renewables Inc.; Mindanao Energy Systems, Inc. and HEDCOR, Inc.
• A further 26 contracts were awarded in early 2010, with an investment of USD 278m in investment for small hydro, marine, wind, geothermal and biomass. The contracts were awarded to Bell Pirie Power, Clean Rock Renewable Energy Resources, Energy Development Corporation, Green Power Panay, Natural Power Sources Integration, Pan Pacific Power, PNOC-Renewables, Phil-Korean Energy, SKI Construction Group and SKI Mini-Hydro.
• The Philippine government is planning to set up a USD 2.8bn clean energy fund to complement its renewables legislation. The Clean Technology Fund is part of the government's plans to invest in renewable energy. It has already implemented a renewable energy legislation, and to complement this, is working out a renewable portfolio standard (RPS) and a FiT mechanism.
International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, said it expects to increase its investment in clean energy projects in the Philippines from
Asia Pacific Clean Tech Handbook 91 of 348 26-Apr-10 USD 1.3bn currently to USD 3bn by 2011. The IFC has flagged geothermal, hydroelectricity, wind and biomass as projects which offer potential.
It has launched the Sustainable Energy Finance Program 'to assist local banks in moving loan financing away from high energy consuming projects toward those favouring energy efficiency, and emission reduction while meeting the country's growing energy needs."
Through the Sustainable Energy Finance Program, IFC said it will be extending help to local financial institutions develop sustainable energy investments by providing financial and technical support, like entering into risk-sharing agreements.
Private Sector Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were no deals completed in 2009 in Clean Technology. For more information, contact the Philippine Venture Capital Investment Group.
Project Finance According to Thomson Reuters Project Finance Database, there were 16 projects totaling $3.4 billion, associated with Clean Technology in Philippines in 2009.
Public Companies Most Clean Tech companies listed on Philippine Stock Exchange are associated with Palm Oil and Biofuels. There were 3 companies, with a Market Capitalisation of $4.3 billion in 2009.
3.12 Thailand 3.12.1 Background Thailand has put in place a 15 year Masterplan for renewable energy that will push its renewable target to 20% of total target. Unlike other countries in APR, Thailand has a high dependence on gas, as a source of power with up to 70% of total generation. It sees renewable energy, as a way to diversify its energy mix and reduce its reliance on natural gas.
Thailand is also looking in the development of nuclear power by 2020 to further reduce its reliance on natural gas and fossil fuels.
According to the Board of Investment (BoI), there are 709 projects in services and public utilities with potential investment value at Bt 430.8 billion in 2010. Most of the projects are related to alternative energy such as production of electricity from wind and solar energies as well as natural gas.
3.12.2 Market Size & Energy Mix According to the IEA Outlook, primary energy demand will increase from 104 Mtoe in 2007 to 174 Mtoe in 2030, with a large reliance on natural gas, primarily for electricity generation.
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Electricity demand is forecast to increase from around 30GW in 2008 to 75GW by 2030.
3.12.3 Government Agencies • Ministry of Energy (MOE) • Department of Alternative Energy Development and Efficiency (DEDP) of the Ministry of Energy • National Energy Policy Council (NEPC) • Board of Investment (BoI) oversees investment in government related projects that include renewable energy projects. • Electricity Generating Authority of Thailand (EGAT) Thailand’s main electric power producer/wholesaler • Metropolitan Electricity Authority (MEA) • Provincial Electricity Authority (PEA) • The Energy Policy and Planning Office (EPPO) is the government agency monitoring the ENCON Fund allocation for renewable energy projects. Grants have been given to encourage R&D on solar energy.
3.12.4 Renewable Regulations • Power Development Plan (PDP) Thailand’s electricity sector is set out in the PDP 2007 which covers the period 2007-2021. Under the plan the EGAT will continue to develop the major power generation projects, while there will be a greater role for the private sector, as purchases from small power producers (SPPs) and independent power producers (IPPs) will increase, as will imports from neighbouring countries. The PDP 2007 projects that the
Asia Pacific Clean Tech Handbook 93 of 348 26-Apr-10 country’s generating capacity will increase to 58 GW by 2021. There is also a goal of supplying 2 GW of electricity from nuclear from 2021, with an expectation that this would be increased by a further 2 GW after a further 10 years. The plan seeks to increase the use of renewables in power generation, thereby reducing dependence on natural gas.
• PDP 2010. The Energy Ministry is revising its PDP (2010-2030) to be completed in early 2010. The so-called ‘PDP 2010’, covering the next 20 years, will focus on sustainability of power generation and environmental preservation and targets power purchase from neighbouring countries of 13-25 % starting 2015. Under such revision, the subcommittee will come up with information needed on 2010's estimated gross domestic product, the forecast of electricity demand over the next 20 years, the plan to purchase electricity from overseas, the development plan for renewable-energy plants and the demand-side management plan. The PDP 2010 plan will be an improvement on the recently revised PDP 2007. Once completed, the office will organise a public hearing before submitting it to the National Energy Policy Council for approval.
3.12.5 Renewable Targets & Incentives Thailand has an installed generating capacity of 28.5GW, with approximately 13.2% of the capacity from hydropower and 1% from renewables.
The Thai government has set aside a THB 15.6bn (USD 440m) budget in its Masterplan for renewable energy development through to 2022. The 15-year plan targets a 20% contribution of renewable energy to the country's overall energy supply. The Department of Alternative Energy Development and Efficiency said the budget will is for capital needed from state agencies and universities to encourage renewable energy consumption.
A large portion of the budget will go into research and development activities, with the rest meant for incentives to make projects economically viable.
By 2022, the plan represents 5,600MW of renewable electricity generation, the majority of which will come from:
• Biomass from 1,600MW in 2008 to 3,700MW in 2022. Biomass heat would increase from 2781 ktoe to 6760 ktoe. • Wind power would grow from 1MW to 800MW; and • Solar – largely photovoltaics – from 32 MW to 500 MW
The MOE expects investment over the 15-year period, from public and private sources, to be some 488 billion Baht (US$ 14.6 billion). Other sectors that will be able to tap into the budget include fuel cells.
Development and promotion of biofuels is one of the top agenda items of the Thai government. Targets have been set to expand the use of ethanol to 9 Ml per day (Ml/d) in 2022 and of biodiesel to 4.5 Ml/d in 2022.
Asia Pacific Clean Tech Handbook 94 of 348 26-Apr-10 Thailand Renewable Targets Year 2008 2011 2022 2030 Electricity Capacity 28.5GW 75GW Electricity Generation 147TWh 170TWh* 280TWh* 325TWh* Renewable Target 13.5% 20% (5,600MW) Hydro 156MW 324MW Nuclear 0 0 200MW 400MW
Wind 1MW 115MW 800MW
Solar PV 32MW 45MW 500MW
Biomass 1,610MW 2,800MW 3,700MW Bioethanol 3Ml/day 9Ml/day Waste to Energy 100MW 160MW Biogas 30MW 120MW Biodiesel 4M.l/day 4.5Ml/day
Source: Ministry of Energy, Thailand’s Energy Policy and Development Plan NEPC, EIA, CARMA, Estimates
In order to reduce its reliance on natural gas, and increase capacity from renewables, it has introduced a couple of programs:
• The Small Power Producer (SPP) program that cover cogeneration and renewable power developers wanting to sell to the grid in the range of 10 to 90MW. The National Energy Policy Council (NEPC) announced in the Power Development Plan in 2009 that provides for firm and non firm SPP capacity of up to 2,000MW by 2013.
• The Very Small Power Producer (VSPP) program introduce in 2002 to provide for small business operations in remote areas to sell power of up to 10MW to the grid. VSPP PPA is not firm and paid on a ‘net metering’ basis. Most projects were biomass co-generation projects.
As of 2008, there were 61 SPPs in operation, generating 3,877MW and 100 VSPPs generating 540MW28.
Feed in Tariffs (FiT) Current support measures for renewables include FiTs, including for biomass, small hydropower, biogas, wind and solar photovoltaic (PV).
The Thai government is planning to increase the tariffs for biomass and biogas projects to make them more competitive.
28 PFI, 2nd December 2009/Issue 422
Asia Pacific Clean Tech Handbook 95 of 348 26-Apr-10 The MOE said the increase in tariffs, through the 'added tariff mechanism' is needed because the cost of feedstock has increased. The adder tariff is a payment above prevailing tariffs for renewable energy projects to encourage investment.
NEPC Proposed Feed in Tariffs in Thailand Project Type Current Adder New Adder Special Adder Special Southern Adder (THB/kWh)
Wind <50kW 3.50 4.50 1.50 1.50
Wind >50kW 3.50 3.50 1.50 1.50
Solar 8.0 8.0 1.50 1.50
Biomass <1MW 0.30 0.50 1.00 1.00
Biomass >1MW 0.30 0.30 1.00 1.00
Biogas <1MW 0.30 0.50 1.00 1.00
Biogas >1MW 0.30 0.30 1.00 1.00
Landfill Gas 2.50 2.50 1.00 1.00
Thermal Process 2.50 2.50 1.00 1.00
Minihydro 50-200 0.40 0.80 1.00 1.00 kW
Minihydro< 50kW 0.80 1.50 1.00 1.00
Source: PFI, NEPC
3.12.6 Research & Development No key research development identified.
3.12.7 Financing
Public Sector Funding • ENCON Fund allocation for renewable energy projects. Grants have been given to encourage R&D on solar energy.
• Thailand Research Fund (TRF), an independent organization under the Office of the Prime Minister, is another institute undertaking R&D and facilitating information on solar cells.
The Thai government is planning to launch a carbon fund later this year, as the country gears up efforts to promote clean energy projects. The Thailand Greenhouse Gas Management Organisation is drafting the structure of the fund and expects to complete this by September. The fund, which could be set up as a joint venture with private firms, would provide low interest rate loans for CDM or co-investment in projects. It will also purchase carbon credits from project
Asia Pacific Clean Tech Handbook 96 of 348 26-Apr-10 developers. The Greenhouse Gas Management Organisation has called on the Board of Investment to offer tax incentives for CDM projects after the Finance Ministry ruled out the possibility of lower taxes for revenue generated from carbon sales.
The World Bank said it plans to offer Thailand USD 700m for its clean energy projects and to boost energy efficiency. The soft loans will be made available through the World Bank's Clean Technology Fund and by its subsidiary the International Finance Corporation. Terms and conditions for accessing the funds will be released to loan applicants later this month. The average interest rate will be from 0.25% to nearly 2% with 20 to 40-year repayment period. The World Bank has estimated that a total of THB 157bn (USD 4bn) investment will be required to develop clean energy projects in Thailand over the next two years.
Private Sector Funding
Venture Capital Based on the Thomson Reuters Venture Capital Database, there were no deals completed in 2009 in Clean Technology. For more information, contact the Thai Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there were 2 projects totaling $50 million, associated with Clean Technology in Malaysia in 2009.
Public Companies Most Clean Tech companies listed on Thai Stock Exchange. There were 5 companies, with a Market Capitalisation of $800 million in 2009.
3.13 Australia 3.13.1 Background
Australia is blessed with abundant sunshine, strong winds, the largest reserves of uranium and unceasing waves in the south from stormy weather whipped up near Antarctica.
At least 20% of the country’s electricity supply is targeted to be generated from renewable sources by 2020. The Government’s Renewable Energy Target (RET) and the proposed Carbon Pollution Reduction Scheme (CPRS) are expected to be key long-term drivers of cleantech investment. With 15% of electricity produced by hydro, there only needs to be around a 5% increase from today.
Australia is home to well known Clean Tech companies such as Solahart, Memcor, Geodynamics, Ausra and Pacific Hydro. With its increased investment in R&D by the Government, developed capital markets and internationally recognized institutions, Australia should be well placed in the Clean Tech markets in Asia Pacific.
In May 2009, the Australian Government announced that it will invest $4.5b under its Clean Energy Initiative to support Clean Technologies. Of this amount, $3.5b is new funding to be
Asia Pacific Clean Tech Handbook 97 of 348 26-Apr-10 directed to various programs including large-scale integrated carbon capture and storage projects, and a solar flagship program.
Australia currently generates around 80% of its power from coal, the other sources from hydro and natural gas. It is ironic that it sits on the largest reserves of uranium globally, yet does not have a single nuclear reactor generating electricity. The key question remains, if the government’s policy will include nuclear, within the renewable portfolio and look to include nuclear power, as an option of base load power.
Experts forecast Australia needs to install around 11,000 MW of new capacity to meet the targets, possibly unleashing $22 billion in investment in the sector.
That means more than half of all of the country's new electricity generation capacity between now and 2020 will have to use renewable energy.
3.13.2 Market Size & Energy Mix
Electricity Demand The Australian Utility Market is split into 3 markets: the National Electricity Market (NEM); the Wholesale Electricity Market (WEM) for Western Australia; and the Darwin and Katherine Interconnected System (DKIS) servicing the Northern Territory.
• NEM was established by the disaggregation of the government vertically integrated system and supplies electricity to 6 states: ACT, NSW, Queenland, Victoria, South Australia and Tasmania and accounts for around 200 GWh per year, over 90% of the total power generation
• WEM was established by the restructuring of Western Power Corporation, into four corporations: Synergy; Horizon Power; Verve Energy and Western Power and accounts for around 16.5 GWh per year.
• DKIS is dominated by the government owned Power and Water corporations and accounts for less than 2 GWh per year
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3.13.3 Government Agencies
National • Department of Water and Energy (DWE). The Australian Department of the Environment and Water Resources develops and implements national policies, programs and legislation to protect and conserve Australia's natural environment and cultural heritage.
• Office of the Renewable Energy Regulator (ORER) The ORER is a statutory authority established to oversee the implementation of the Australian Government's renewable energy target (RET).
• Department of Climate Change (DCC) is responsible for the Carbon Pollution Reduction Scheme (CPRS) and Renewable Energy Target (RET), Solar Credit program,
• Department of Energy, Water Heritage and the Arts (DEHWA) responsible for the Smart Grid Fund and Renewable Energy Equity Fund (REEF), Solar Cities, Green Loans, Low Emission and technology abatement fund, Renewable and remote power program, Solar hot water, rebate program, Energy Efficiency home package
• Department of Resources, Energy and Tourism (DRET) responsible for the Commercialisation Fund, the Energy Efficiency Opportunities, Advanced electricity storage program
• Department of Innovation, Industry, Science and Research (DIISR) responsible for Clean Business Australia, Clean Energy Enterprise,
Asia Pacific Clean Tech Handbook 99 of 348 26-Apr-10 State • Queenland Office of Clean Energy (OCE)
• Sustainability Victoria (SV)
3.13.3 Clean Technology Regulation The main regulatory driver for Clean Technology investment is the Mandatory Renewable Energy Target that has increased Australia’s renewable target to 20% by 2020. Other key regulations include:
Federal • Renewable Energy Target (RET). The aim of the renewable energy target is to increase the production of renewable energy: all electricity retailers and wholesale buyers have a legal liability to contribute towards the generation of additional renewable energy. They meet their legal obligation by acquiring renewable energy certificates (REC); certificates can be traded in the REC market, at market price. The Australian Government is committed to reach 9,500GWh of renewable energy by 2010. Furthermore, in 2007 the Australian Government introduced a comprehensive renewable and low-emission energy target, which builds on the market-based framework of the MRET. The new national Clean Energy Target (CET) will be maintained at 45,000GWh of low-emissions energy generation from 2020 until 2030. In February 2010, the Federal Government announced that it will split the RET scheme in two in the wake of criticism it has undermined investment in large-scale technologies in favour of small-scale solar PV. Legislation to create the new small-scale renewable energy scheme (SRES) and large-scale RET (LRET) would be introduced in the winter (Aug) sittings of parliament to start in 2011.
• Building Code Australia (BCA). BCA is managed by the Australian Building Codes Board (ABCB) on behalf of the Australian Government and State and Territory Governments. Its goal is to enable the achievement of minimum necessary standards of relevant health, safety, amenity and sustainability objectives efficiently. The BCA was revised in 2006 to include new Minimum Energy Performance Standards (MEPS) for all classes of buildings.
• Greenlight Australia. Greenlight Australia provides a framework for reducing energy consumption from Australian lighting over the ten-year period, following a 2005 commitment of the Australian governments and the Australian lighting industry to reduce the energy consumption of lighting by 20% by 2015.
• Coal21. The Australian Coal Association’s program between the coal and electricity industries, governments, researchers and unions to investigate a variety of technologies, including CCS to reduce or eliminate greenhouse gas emissions from coal production and coal-fired power generation.
Asia Pacific Clean Tech Handbook 100 of 348 26-Apr-10 3.13.4 Renewable Targets & Incentives
Australia Renewable Targets Year 2008 2010 2020 Electricity Generation 261TWh* 291TWh* 306TWh* Renewable Target 20% (45,000 GWh) Hydro 17.8TWh 17TWh 16.8TWh Nuclear 0 0 0
Source: EIA, CARMA, Government Publications, Estimates
Wind power remains the cheapest form of renewable energy but is still at an early stage, with installed capacity at about 1.3GW - barely 3% of Australia's total installed capacity of 45 GW.
Solar power holds promise in a country known for its sunshine. Australia's solar credits program, which will subsidise the cost of households installing 1.5-kw solar power systems, and subsidised tariffs, should help boost demand. Australia may see increased investment in geothermal power, which taps heat trapped in granite 3 km or more below the earth's surface to run turbines and generate power. Studies suggest that Australia's hot fractured rock geothermal energy could provide up to 2,200 MW of base-load capacity, or up to 40% of the country's renewable target, entailing investment of about AUD$12 billion.
A rush to deploy proven technologies will be at the expense of geothermal and other emerging technologies including concentrated solar power and ocean energy, which require time and huge capital to develop.
Renewable energy would require government subsidies for many years to make it cost competitive against fossil fuels. Marginal costs for wind and geothermal over the long-term would be about $100 per MWh and concentrated solar about $150 per MWh. Wave energy is estimated at about $225 per MWh.
Though costs are expected to trend downwards over time, competing with conventional electricity prices, currently at $30 to $50 per MWh, would be tough. Rising prices for carbon amid earth's limited supply of oil and gas could work towards making clean energy cost-competitive.
For now, the main challenge confronting the renewable energy sector would be securing funding for investment in building new projects. Fiscal stimuli directed towards boosting low carbon energy systems should ease industry's funding concerns.
The South Australian state government said it aims to increase the state's renewable energy production target to 33% by 2020. In a bid to upstage other states, South Australia will aim to reach 20% target by 2014 and announced a new AUD 20m Renewable Energy Fund to accelerate investment in this sector.
Australia's Senate approved laws on August 2009, requiring 20% of the country's energy to come from renewable sources by 2020, opening the door to a $22 billion investment rush and lifting hopes of an emissions trade deal.
Asia Pacific Clean Tech Handbook 101 of 348 26-Apr-10 The renewable laws aim to come into effect on January 2010 and target production of 45,000 GWh of clean energy, or 20% of Australian energy, over the next decade.
The centre-left government struck a deal with the conservative opposition controlling the largest Senate vote bloc to pass the laws, raising hopes of agreement in November when controversial emissions trade laws will return to parliament, where they were rejected by the Senate last week.
Following are some of the main steps the government hopes to achieve, and industry concerns about the law.
Feed in Tariffs (FiT)
Australia currently has no nationalised FiT program, only state run schemes. A summary of the state arrangements is provided below:
Summary of FiTs in Australia Max Rate Program State Current status Model Size Paid Duration
60c VIC Commenced November 2009 5 kW 15 years Net (credit/cash)
SA Commenced July 2008 10 kW 44c+ 20 years Net
under 10 kW - 50.05c/kWh up to 10kw premium rate; over capacity and ACT Commenced March 2009 10kW - 80% of 20 years Gross 40.04c/kWh up to 30kW premium rate; over capacity 30 kW - tbc
TAS Commenced tbc 20c tbc Net
45.76 c/kWh. Incentive is available for 225 Capped at $5 per day, NT rooftop PV tbc then reverts to 23.11c tbc Net systems in Alice Springs. per kWh.
WA To commence July 1 2010 tbc tbc tbc Net
QLD Commenced July 2008 10 kW 44c+ 20 years Net
NSW To commence January 2010 10 kW 60c/kWh 7 years Gross
Source: Government Publications, Energy Matters – www.energymatter.com.au
Renewable Energy Certificates (RECs) Created under the earlier MRET scheme, each REC represents 1 MWh of green energy produced and is sold to wholesale electricity buyers. These firms are legally bound to meet a
Asia Pacific Clean Tech Handbook 102 of 348 26-Apr-10 share of the renewable energy target in proportion to their share of the national wholesale power market.
RECs are trading around A$35 per MWh and will continue to be used under the expanded renewable target legislation.
Eligible projects that can earn RECs include solar water heaters and small generation units, such as solar panels on household roofs, small wind turbines and micro-hydro.
Certificate Multiplier Instead of simple cash rebates, the new legislation proposes a complex system of issuing large amounts of RECs upfront for clean-energy installations up to the first 1.5 KW of capacity. Under the scheme, householders can receive up to 15 years of RECs based on the amount of energy calculated to be generated over the 15-year period.
As an extra incentive, the scheme has what is called a REC multiplier during the initial years.
For example, during the first two years, householders can earn one-off subsidies of five times the 15 years' worth of RECs. Once these are issued, no more RECs are given for a particular installation for the deemed 15-year life of the generating unit.
Industry Concerns First, the industry says the 1.5 KW limit is far too small, since Australian households consume between 3 and 5 KW. The nation's peak clean-tech industry body, the Clean Energy Council, says the limit should be raised to 200 KW to really get green investment going.
Second, the scheme would largely support more proven renewable energy technology, particularly wind power, which could chew up most of the available RECs and leave little for emerging renewable technologies such as geothermal and wave energy.
Third, the creation of "phantom" RECs is a potential worry. For each REC, extra certificates are created under the multiplier scheme for the same output. The scheme target should be increased by the number of additional RECs created by the multiplier, the Council says, to ensure the extra RECs are fully taken into account.
Fourth, coal seam methane, a coal mining waste product, is among the technologies to benefit from the law. Though the technology won't count toward the 20% renewable target, the gas from coal seams isn't exactly renewable.
Long term Target The RET scheme runs until 2030 but the 45,000 GWh target, set to be reached by 2020, remains the same until 2024, then quickly declines to 23,000 GWh by 2030. In effect, this will lead to a substantial drop in the number of RECs issued. Creation of a boom-and-bust market is an industry concern. The Clean Energy Council fears the trajectory will spook investors and lead investment to stall by 2014 because there will be only a small period in which to recoup funds by 2024.
Asia Pacific Clean Tech Handbook 103 of 348 26-Apr-10 3.13.6 Research & Development • The Intelligent Grid Research Program is an Australian collaboration between the CSIRO and five universities investigating technologies and practices to make our electricity networks smart, greener and more efficient. Intelligent Grid is a 3-year collaborative research project running from July 2008 to June 2011and undertaken by five universities- University of Technology, Sydney, University of Queensland, and University of South Australia, Queensland University of technology and Curtin University. It has $3.4 million in funding from CSIRO and a further $6.1 million from the collaborating institutions.
3.13.7 Financing
Public Sector Funding
National • Renewable Energy Development Initiative (REDI). REDI was a program launched in 2004 supporting renewable energy innovation and commercialisation. It provided grant funding up to AUS$100 million in competitive grants to Australian businesses over seven years for research and development (R&D), proof-of-concept, and early-stage commercialisation projects with high commercial and greenhouse gas abatement potential. This program ceased funding new projects in January 2008. Projects with contracts in place before this will continue until completion.
• Australian Government Water Fund. The Fund, run by the Australian Government, is a $2 billion program over 2005-2010 funding water infrastructure, improved water management, and better practices in the stewardship of Australia’s scarce water resources. The Fund supports field water projects that will improve Australia’s water efficiency and environmental outcomes.
• Smart Grid Fund. The Government will provide up to $100 million, funded by DEWHA to develop a smart grid energy network to a consortium of State and Local government and private sector companies. Award of the investment is expected in mid 2010.
• Energy Innovation Fund has been established to provide $150 million to support the development of Clean Technology and funded by DRET.
• Renewable Energy Equity Fund (REEF) is a $25 million fund for venture capital for renewable energy companies.
• Commercialisation Fund is a $465 million fund to support leading edge technology to bring to market.
• Solar Cities
Private Sector Funding In March 2003 the Australian Coal Association (ACA) issued initiations to representatives from the coal and electricity industries, unions, federal and state governments and the research
Asia Pacific Clean Tech Handbook 104 of 348 26-Apr-10 community to participate in a process aimed at first identifying and then realising the potential for reducing or eliminating greenhouse gas emissions from coal-based electricity generation in Australia. Agreement to participate by some 40 organisations led to the creation of the COAL21 partnership or program. The program's development work culminated with the release in March 2004 of the COAL21 Action Plan - providing the blueprint for accelerating the demonstration and deployment of technologies to reduce greenhouse gas emissions from coal-based electricity generation. See: COAL21 Action Plan - Summary. In 2006 the ACA announced the establishment of the COAL21 Fund as part of a world-first, whole-of-industry, funding approach to support greenhouse gas abatement. The COAL21 Fund is raising more than $1 billion over 10 years from a voluntary levy on black coal production to support the pre-commercial demonstration of low emissions technologies in the power generation sector
Venture Capital There is a significant financing gap between innovation and commercialisation, particularly at the pre-seed and seed stages. Most VC funds are fully invested and there are only a handful of cleantech-dedicated funds. In addition, there are limited funds available for investment in cleantech demonstration projects. However, Australia is one of the leading countries at raising VC/PE deals in Asia Pacific.
Based on the Thomson Reuters Venture Capital Database, there were 8 deals , totaling $830 million completed in 2009 in Clean Technology. For more information, see the Australian Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there were 17 projects totaling $5.3 billion, associated with Clean Technology in Malaysia in 2009.
Public Companies Most Clean Tech companies listed on the ASX. The ASX has over 40 companies listed in the Clean Tech and resource space and one of the leading exchanges in the region at raising capital for this sector.
Asia Pacific Clean Tech Handbook 105 of 348 26-Apr-10 Figure 3.14 - Australia Private Sector Funding
13.2B 9.3B 40 Companies 829M 40 Companies VC/PE Deals 37 Companies Project Financing Deals 8.3B Market Cap/Companies 33 Companies 28 Companies
6.2B
4.4B
3.5B 5.3B 22 Deals
17 Deals 173M 14 Deals 14 Deals 11 Deals 11 Deals 11 Deals 8 Deals 6 Deals 39M 3.3B 28M 15M 1.3B
2005 2006 2007 2008 2009
Source: Thomson Reuters 3.14 New Zealand 3.14.1 Background New Zealand has the highest percentage of power generated from renewable energy in the Asia Pacific region. A number of regulations and policies are in place to target that number up to 90% by 2025.
However, a change in government in 2008 has put a stop in some of these policies and a review of the Energy Strategy is likely to change some of the key policies to focus on energy security.
3.14.2 Market Size & Energy Mix New Zealand currently generates around 70% of its power from renewable sources, mainly from hydro and geothermal.
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3.14.3 Government Agencies • Ministry for the Environment is the Government policy agency with over-arching responsibility for the implementation of the Resource Management Act (RMA) and Hazardous Substances and New Organisms Act (HSNO, see below). The Department of Conservation is responsible for the protection of natural and historical heritage.
Central government can issue national policy statements on any aspect of resource management which is of national significance. They will provide direction for district and regional councils. Regional councils are responsible for the mandatory regional policy statements. Other ministries involved in Clean Technology include:
• Ministry of Economic Development
• Ministry of Research, Science and Technology
• Ministry of Agriculture and Forestry
• Ministry of Energy
3.14.4 Renewable Regulation • Resource Management Act (1991) defines sustainable management in ways that address social, economic, and cultural considerations, including meeting the needs of future generations, safeguarding the life-supporting capacity of natural resources and ecosystems, and avoiding, remedying, or mitigating the adverse environmental effects of human activities.
Asia Pacific Clean Tech Handbook 107 of 348 26-Apr-10 • Energy Strategy 2007, the strategy sets out the Government’s vision for a sustainable, low emissions energy system and includes an action plan for implementation. The Strategy sets a target of generating 90% of New Zealand’s electricity from renewable energy sources by 2025. The new government announced in 2009 that it is revising the Energy Strategy to focus on security of supply.
• Framework for a New Zealand Emissions Trading Scheme (ETS) 2007. The government has made an in-principle decision that the ETS will include all major sectors and all greenhouse gases specified in the Kyoto Protocol. It is expected that by 2013 all major sectors will be included. However, the ETS is currently under review, with the change in government in 2008
• Minimum Energy Performance Standards (MEPS) The Government introduced regulations in February 2002 which require selected products and appliances to meet minimum energy performance standards (MEPS) and/or energy labelling requirements: Energy Efficiency (Energy Using Products) Regulations 2002
• Energy Efficiency (Energy Using Products) Amendment Regulations 2004
• New Zealand Waste Strategy. This includes a target requiring all substandard wastewater treatment plants to be upgraded, closed or replaced by December 2020. The Ministry for the Environment partners the New Zealand Water and Wastes Association to develop initiatives which improve the country's environmental performance in the area of wastewater.
• Biofuels Sales Obligation (2007). The Government announced in 2007 that it would introduce a mandatory obligation for firms that sell petrol or diesel to sell biofuels. However the Sales Obligation was repealed in 2008, with the change in Government.
3.14.5 Renewable Targets & Incentives New Zealand proposed a 90% renewable energy target by 2025, as part of its Energy Plan in 2007. However, with the change in government in 2008, the Plan is currently under review.
New Zealand Renewable Targets Year 2008 2010 2025 Electricity Generation 43TWh* 45TWh* 50TWh* Renewable Target 90% Source: EIA, CARMA, Government Publications, Estimates
3.14.6 Research & Development • The Foundation for Research, Science and Technology. The Foundation was established by the Research, Science and Technology Act 1990 to invest in science and technology research for the benefit of New Zealand. It is a Crown Agent governed by a Board appointed by the Minister of Research, Science and Technology. Its aim is to stimulate prosperity and improve the well-being of New Zealanders and the environment through investing in innovation and fostering the creation of new knowledge. It invests approximately NZ$450 million of public money per annum through a number of funds and schemes to help support:
Asia Pacific Clean Tech Handbook 108 of 348 26-Apr-10 public good' related science and technology, undertaken by Crown Research Institutes, universities, private researchers and industry led-consortia; private sector business research and development; and top-achieving students and researchers.
• Sustainable Business Initiatives
• Pastoral Greenhouse Gas Research Consortium (PGgRc) Launched in 2002, this is a consortium of organisations from the agriculture industry (AgResearch Ltd, Dairy Insight, DEEResearch, the Fertiliser Manufacturers' Research Association, Fonterra, Meat and Wool New Zealand and Wrightson Ltd) who, with FRST (the Foundation of Research, Science and Technology), match fund investment which aims to understand and provide mitigation solutions for greenhouse gases produced by grazing animals.
3.14.7 Financing
Public Sector Funding
• The Energy Intensive Business (EIB) project. This project, run by the Energy Efficiency and Conservation Authority (EECA), offers cash grants to businesses to help them adopt energy saving technologies. The project is targeted at companies that spend a high portion of their business costs on energy, allowing them to apply for up to 40% of the capital cost of an energy efficiency project (to a maximum of $100,000). The grants are designed to pay for projects that include energy efficient technologies such as: high efficiency motors; fans and boilers; variable speed drives; dehumidifier dryers; heat recovery; storage and retention; cogeneration; renewable waste product fuels; industrial refrigeration; fishing technologies; and soil moisture sensing.
• Bio-energy Gateway. This is a program to support the use of wood waste as a renewable energy source from businesses. EECA is coordinating the bioenergy initiative of the Government’s Forest Industry Development Agenda (FIDA) to increase the uptake of renewable energy from the forestry sector. It provides tools, calculator and forums for the business
Private Sector Funding Based on the Thomson Reuters Venture Capital Database, there were no deals completed in 2009 in Clean Technology. For more information, contact the NZ Venture Capital Association.
Project Finance According to Thomson Reuters Project Finance Database, there was 1 projects totaling $632 million, associated with a Wind Project in 2009.
Public Companies Most Clean Tech companies listed on NZ Stock Exchange. There were 2 companies, with a Market Capitalisation of $35 million in 2009.
Asia Pacific Clean Tech Handbook 109 of 348 26-Apr-10 4 REGIONAL COMPARISON
The APR will generate over 15,000 TWh by 2030, which will account for over half the global total. The North Asian Countries account for the largest power generation in APR (76% ), mainly driven by China, which will increase to over 80% by 2020.
Hydro accounts for arounc 13-14% of the total power generated in the APR
Nuclaer, which is driven by the North Asian Countries and India, accounts for 8-9% of the total power generated.
Renewables, excluding Hydro accounts for only 2.3% in 2010 and expected to increae to 4% by 2030. Wind Power, Solar and Biomass are the largest contributors to the renewable contribution. Other growing sectors include Geothermal and Wave Technology.
4.1 North Asia
2010 2020 Generat Generat ion Renewa ion Renewa (TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble China 3968 3223 65 642 36 6344 4847 286 1118 93 Japan 1063 699 310 79 43 1182 680 336 91 40 South Korea 412 265 142 4 2 537 313 211 4 8 Taiwan 218 164 38 8 8 354 276 58 9 11 North Asia 5661 4351 555 733 89 8416 6116 891 1222 152 Source: EIA, IEA, CARMA, Estimates
Hydro is expected to contribute over 1,200 TWh, with over 1,100 TWh contribution from China alone, mainly due to the construction of the Three Gorges Dam.
Nuclear is the second largest contributor with close to 900TWh by 2020, split evenly between Japan, South Korea and China.
Wind , Solar and Biomass are the major contributors to the Renewable Contributions, with 100GW and 30GW target for Wind and Biomass for China in 2020.
4.2 South Asia
2010 2020 Generat Generat ion Renewa ion Renewa (TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble India 863 667 37 138 21 1463 1050 119 247 47
Source: EIA, IEA, CARMA, Estimates
Hydro is the largest contributor and is expected to oontribute around 250TWh by 2020, followed by Nuclear with 120 TWh by 2020.
Asia Pacific Clean Tech Handbook 110 of 348 26-Apr-10 Wind and Biomass are expected to be the largest contributor to the renewable contribution.
4.3 South East Asia
2010 2020 Generat Generat ion Renewa ion Renewa (TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble Indonesia 180 155 0 15 11 290 253 0 21 16
Malaysia 110 90 0 13 7 150 115 0 27 8
Philippines 70 44 0 10 16 115 76 0 17 22
Thailand 170 159 0 7 4 260 245 0 10 5
South East Asia 530 447 0 45 38 815 689 0 74 52
Source: EIA, IEA, CARMA, Estimates
The largest contributor for South East Asia is Hydro with 75 TWh by 2020, contributing around 9% of the total power generation contribution.
Renewables are expected to contribute around 6.5% of the total power generation, mainly driven by Biomass and Geothermal. This is a higher contribution than North Asia countries.
4.4 Pacific
2010 2020 Generat Generat ion Renewa ion Renewa (TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble Australia 276 250 0 17 9 306 275 0 18 15
New Zealand 45 12 0 21 12 50 13 0 19 18
Pacific 321 263 0 38 21 356 288 0 37 33
Source: EIA, IEA, CARMA, Estimates
The largest contributor for Pacific is Hydro with 37 TWh by 2020, contributing around 10% of the total power generation contribution.
Renewables are expeted to contribute around 9% of the total power generation, mainly driven by Wind and Geothermal.
Australia is a leader in Wave and Geothermal Technologies
4.5 Key Clean Technology Sectors Based on the country review, key sectors for CleanTechnology in APR include:
Asia Pacific Clean Tech Handbook 111 of 348 26-Apr-10 • Hydro – which accounts for around 14% of the total power generation
• Nuclear - which accounts for around 8-9% of the total power generation
• Renewable Energy will grow from around 2.5% to 4% by 2030, mainly driven by growth in the Wind, Solar, Biomass and Geothermal sectors.
Other key technologies that will have a large impact on power generation include CCS, Smart Grid, Landfill Gas and Biogas. CCS alone, could account for 1125 projects and 850GW by 2050.
IEA CCS Projects in Power Generation
Region No. Projects in CCS Capacity Captured 2020 No. Projects in CCS Capacity Captured 2050
2020 in 2020 (GW) (Mt CO2/year) 2050 in 2050 (GW) (Mt CO2/year)
OECD Pacific 2 1.3 9 150 85 510
China & India 6 2.5 13 465 365 1785
Non-OECD 4 1.6 6 610 400 1725
World Total 38 22 131 1670 1140 5510
Source: IEA
Asia Pacific Clean Tech Handbook 112 of 348 26-Apr-10
PART B – CLEAN TECHNOLOGY SECTOR REVIEW
Asia Pacific Clean Tech Handbook 113 of 348 26-Apr-10 5 ENERGY SECTOR OVERVIEW 5.1 Market Map of Clean Technology There are many different definitions of Clean Technology and the term is loosely applied to a number of fragmented technologies that will either replace existing supply of fossil fuels or use energy more efficiently.
The Handbook has broken down the content into a “Market Map” with 4 main sectors:
• Energy Supply • Energy Usage • Other Pollutants (waste and water) • Services
Each sector is then broken down into smaller sub-sectors. We will use this fragmented Market Map and overlay it onto a diverse set of countries that make up APR and attempt to construct a country profile and highlight particular ‘hot spots’ for a country. Detailed company profiles are provided in the Appendix.
In addition, this allows a user to take a sector look across APR and compare say - Geothermal in Australia, Indonesia, Japan and Philippines. Please contact the author for further updates.
Figure 5.1 – Asia Pacific Clean Tech Market Map
International Policy and Regulation
Government Policy and Regulation
Energy Supply Energy Usage Other Pollutants Support
Power Renewable Conventional
Sectors Generation Building Industry Transportation Water Waste Services Energy Energy Distribution
Private Wind Generation Coal Design Design Road Extraction Collection Sector Funding
Private Solar Distribution Gas Materials Materials Rail Treatment Recycling Sector Services
Energy from Government Biofuel Storage Oil Efficiency Efficiency Air Distribution Waste Agency
Demand Biomass Nuclear Water Usage Treatment Universities Management Sub Sectors Sub Marine Hydrogen Storage Wastewater Disposal
Geothermal Covered in report Not covered in report Hydro Services & Support
Asia Pacific Clean Tech Handbook 114 of 348 26-Apr-10 5.2 Energy Supply 5.2.1 Renewable Energy
5.2.1.1 Wind Wind is the largest sector in the renewable technology space in APR and continues to lead the way in terms of installed capacity. Breakdown of the wind sector is broken down as:
Wind Turbines
• Offgrid / <1 MW / Horizontal – Horizontal wind turbine with under 1 MW capacity that generates electricity to be used locally and does not require connection to the power grid
• Offgrid / <1 MW / Vertical – Vertical wind turbine with under 1 MW capacity that generates electricity to be used locally and does not require connection to the power grid
• Ongrid / 1-3 MW / Onshore – Horizontal wind turbine with capacity between 1 and 3 MW that is located onshore and feeds the generated electricity onto the power grid
• Ongrid / >3 MW / Onshore – Horizontal wind turbine with capacity over 3 MW that is located onshore and feeds the generated electricity onto the power grid
• Ongrid / >3 MW / Offshore – Horizontal wind turbine with capacity over 3 MW that is located offshore and feeds the generated electricity onto the power grid
The supply chain can be broken down into: Gearbox; Blades; Components; and Operators.
For an update on the Wind Sector in Asia Pacific, see Section 6.1.
5.2.1.2 Solar The solar sector covers all technologies related to the capture energy from the sun. These include direct production of electricity using semiconductor-based photovoltaic (PV) materials, use of concentrated sunlight to heat fluid to drive power generation equipment, and passive methods which use solar to replace fossil fuel energy, such as heat water. The photovoltaic sector, along with the wind sector is the largest of the renewable sector in terms of investment and installed capacity.
Photo Voltaic (PV) The PV Solar supply chain can be broken down into:
• Feedstock • Wafer • Cell & Module Manufacturers • Equipment Manufacturers
There is a move into Thin Film PV to commercialize new technology, which includes:
• Amorphous Silicon Thin Film Photovoltaic Cell (a-Si PV) – Type of thin film solar cell based on amorphous silicon chemical compound
Asia Pacific Clean Tech Handbook 115 of 348 26-Apr-10 • Building Integrated Photovoltaic (BIPV) – Application of solar photovoltaic materials, whether crystalline or thin film, into actual building structures, normally replacing conventional building materials in parts of the building envelope such as the roof, skylights or facades
• Cadmium Telluride Thin Film Photovoltaic Cell (CdTe PV) – Type of thin film solar cell based on cadmium telluride chemical compound
• CIGS Thin Film Photovoltaic Cell (CIGS PV) – Type of thin film solar cell based on copper iridium gallium selenide chemical compound
• Crystalline Silicon Photovoltaic Cell (cSi PV) – Type of solar cell made from a single crystal or a polycrystalline slice of silicon that was the first type to be widely commercialized
Solar Concentrator The solar concentrator market is concentrated in Australia and in some parts of China. It is much smaller than the PV solar market in APR. Key technologies include:
• Concentrating Photovoltaic (CPV) - Device that concentrates sunlight onto photovoltaic surfaces to produce electricity.
• Fresnel Mirror – Solar thermal energy collector that consists of a series of long, narrow, slightly curved mirrors that focus the light onto linear receivers positioned above the mirrors to be eventually converted into electricity.
• Parabolic Dish Stirling Engine – Device that concentrates sunlight at a single focal point via a parabolic dish to produce electricity and that can track the sun along two axes by automatically adjusting the direction of the dish.
• Parabolic Trough – Solar thermal energy collector that consists of a long parabolic mirror and a Dewar tube running its length at the focal point that absorbs energy from the sunlight which is converted into electricity.
• Power Towers – Type of solar power plant that uses a tower and a high heat capacity component to receive the sunlight focused by an array of flat movable mirrors and convert it into electricity.
Solar Water Heater (SWH) Solar water heaters are a system which heats water by absorbing energy from sunlight. It normally consists of solar thermal collectors, fluid systems to transport the heat and a water tank, where water is heated and stored. China is the global market leader and accounts for two thirds of global manufacturing.
Solar from Space While outlandish, there are plans to place PV Solar panels in space. Solar in space benefits from not being affected by weather, while also being able to be positioned so it can generate power 24 hours a day. The two notable issues will be the cost of sending payloads up into space and the transmission of microwaves to land based receivers. A key player in this area is Japan.
Asia Pacific Clean Tech Handbook 116 of 348 26-Apr-10 For an update on the Solar Sector in Asia Pacific, see Section 6.2.
5.2.1.3 Biofuel Liquid transportation fuels including biodiesel and bioethanol. These can be derived from a range of biomass sources, including palm oil, sugar cane, soybean oil, algae or jaltropha. Biofuel production varies from country to country, with Biodiesel generated from Palm Oil dominating in Malaysia and Indonesia.
• Palm Oil Biodiesel – Biodiesel produced from Palm Oil. This market is concentrated primarily in Malaysia and Indonesia and is contentious, due to its association with the clearing of tropical rainforests
• Jatropha Diesel – Biodiesel produced from jatropha crop and can grow on poor soil. However, takes years to produce first crop.
• Mircoalgae Diesel – Diesel produced from microalgae, which are photosynthetic organisms that can be farmed in water.
• Cassava Bioethanol – Bioethanol produced from cassava crop.
• Cellulosic Bioethanol – Bioethanol produced from wood, grasses or other plants.
• Sweet Sorghum Bioethanol – Bioethanol produced from sweet sorgum crop.
• Waste Vegetable Oil Biodiesel – Biodiesel produced from waste vegetable oil.
For an update on the Biofuels sector in Asia Pacific, see Section 6.3.
5.2.1.4 Biomass Production and consumption of solid and gaseous fuels derived from biomass. Solid biomass for the energy sector can include a number of specially-grown crops, such as switch grass and wood pellets, but it can also consist of crop residues. Biomass is a key sector in APR, with a consistent feedstock and is being used as an alternative feedstock for developers, generators and utilities in countries, such as Indonesia.
For an update on the Biomass sector in APR, see Section 6.4.
5.2.1.5 Hydro Hydro power is one of leading renewable sources of power in Asia Pacific. Plants can generally be divided into three different categories depending on the type of head and the nature of the plant. There has been a rush of micro hydro projects in Asia, driven by CDM projects.
• High-head power plants are the most common and generally include a dam to store water at a higher elevation. These systems are commonly used in mountainous areas. • Low-head hydroelectric plants generally use heads up to a few metres in elevation or simply function on the run of the river. Low-head systems are typically built along rivers. • Multipurpose hydro power systems are generating facilities where the hydro power is subordinate to other activities like irrigation, industrial processes, drinking water supply or
Asia Pacific Clean Tech Handbook 117 of 348 26-Apr-10 wastewater disposal. Electricity production is thus not the only objective of the plant but often a useful by-product.
For an update on the Hydro sector in Asia Pacific, see Section 6.5.
5.2.1.6 Wave/Tidal The Wave/Tidal sector covers all technologies relating to extraction of energy from the sea and tidal flows. Possibilities include waves and tide, either via tidal barrages or tidal flow generators. Unlike Solar or Wind, there appears to be no leading technology and a number of different technologies are emerging that fall into three main categories: oscillating columns; oscillating bodies; and overtopping technologies. There seems to be less government funding and backing for this sector in APR, even though the potential natural resources appear to be huge.
For an update on the Wave/Tidal sector in Asia Pacific, see Section 6.6.
5.2.1.7 Geothermal Geothermal power has long played a part in the energy mix of countries along the “Ring of Fire”, such as Philippines, Indonesia and Japan. Three power plant technologies are being used to convert hydrothermal fluids to electricity. The type of conversion depends on the state of the fluid (steam or water) and on its temperature:
• Dry steam power plants use hydrothermal fluids primarily in the form of steam. The steam goes directly to a turbine, which drives a generator that produces electricity. This is the oldest type of geothermal power plant.
• Flash steam power plants use hydrothermal fluids above 175°C. The fluid is sprayed into a tank (separator) held at a much lower pressure than the fluid, causing some of the fluid to vaporise rapidly, or “flash” to steam. The steam then drives a turbine.
• Binary-cycle power plants use hot geothermal fluid (below 175°C) and a secondary (hence, “binary”) fluid with a much lower boiling point than water – both passing through a heat exchanger. Heat from the geothermal fluid causes the secondary fluid to flash to steam, which then drives the turbines.
For an update on the Geothermal sector in Asia Pacific, see Section 6.7.
5.2.2 Power Generation and Distribution
Generation This sector covers technologies that result in a technological improvement in the generating efficiency of existing power generation equipment. Technologies include motor or generator design, as well as software, sensor and control technologies.
Distribution As power supply (generated via renewable sources) become more variable the importance of reducing grid losses becomes higher with higher power costs, so the significance of improving power distribution will grow. This sector includes a number of technologies that target such
Asia Pacific Clean Tech Handbook 118 of 348 26-Apr-10 improvement, from the forecasting of renewable resource availability, through software to balance supply and demand or find grid faults, to technology that allows peak shifting or intelligent meter reading.
Storage Many renewable energy and emerging energy technologies are either intermittent, or have responses that are unable to follow the dynamic demands that will be put on them when deployed. Batteries and other energy storage technologies become important for any shift to these technologies. Leading storage technologies include:
• NaS Battery – Sodium-sulphur battery with high energy density and high efficiency of charge/discharge that requires high operating temperatures.
• Vanadium Redox Battery – Flow battery with deep cycling life that can be mechanically refueled and has low negative environmental impact.
Smart Grid This a sector that is gaining favour with venture capitalists and investors, as countries look to upgrade their grid infrastructure to cater for decentralised power generation from multiple sources. Key technologies include:
• Advanced Metering Infrastructure (AMI) – Integrated system that measures, collects, stores and analyzes utility usage, such as electricity, gas or water usage; is a broader concept than AMR-IP based solution.
• Digital Substation – Automated and computerized substation that provides greater transparency, higher reliability and efficiency of operations.
• IP-Based Automatic Meter Reading (AMR) – Solutions that automatically gather data from energy metering devices and transmit to a central processing facility where billing is handled and consumption patterns are analysed.
• Real-Time Information Processing – Solutions that enable real time communication between core nodes in the electric network, including customer premise, and allow better management of demand, improved reliabiliity and flexibility of the network.
• Wide Area Management System (WAMS) – Integrated system that monitors and controls elements of the electrical power grid to ensure availability and improve reliability and efficiency of the network.
For an update on the Smart Grid sector in Asia Pacific, see Section 6.8.
5.2.3 Conventional Energy
Coal Cleaner coal includes solutions such as Coal Screening and Scrubbing, Integrated Gasification Combined Cycle (IGCC) and Carbon Capture and Sequestration (CCS).
Asia Pacific Clean Tech Handbook 119 of 348 26-Apr-10 For an update on the CCS sector in Asia Pacific, see Section 6.9.
Gas Cleaner gas consists of solutions such as Capture and Use of Coal Mine Ventillation Air Methane and Natural Gas Combined Cycle (NGCC).
Oil Cleaner oil is made up of solutions such as Efficient Oil Extraction, Water Reinjection and Optimized Reservoir Management that allows oil to be extracted in ways which minimize negative impact on the natural environment.
Nuclear Nuclear power is energy derived via controlled nuclear fission of radioactive materials at nuclear power plants. While not renewable, it is currently the only non fossil fuels available to replace fossil fuel baseload power generation. This section also looks at the advances in new reactor design and new materials required to build the next generation of reactors.
For an update on the nuclear sector in Asia Pacific, see Section 6.10.
5.3 Energy Usage 5.3.1 Building (Residential and Commercial) Green Buildings covers planning, building and operating solutions that are more sustainable, efficient than existing buildings. This includes retrofitting existing buildings.
Design Integrated Design such as LEED accreditation can lead to significant energy savings and efficiency gains.
Materials Improvements in materials such as: insulation, double glazing and building material will lead to more efficiency gains in trapping heat in winter and cooling in summer.
Efficiency Improvement is energy and water efficiency in the residential and commercial building. This will include energy efficiency in air conditioning coolers.
• Green Devices – Electronic devices used inside buildings, including lighting solutions, appliances and consumer electronics that are more energy efficient than conventional alternatives. This section overlaps and integrates into the Smart Grid section.
• Smart Buildings – Buildings that rely on integrated IT-based resource use measurement and monitoring, intelligent analysis of the internal environmental and performance data, and automation of connected building systems.
• Advanced Envelope – Includes insulation, windows, roofing and other passive solutions
Asia Pacific Clean Tech Handbook 120 of 348 26-Apr-10 • Building-Integrated Heat and Power – Combination of heating and power generation solutions that could be integrated into a building, such as solar photovoltaic cells, wind turbines and solar water heaters.
5.3.2 Industry This section covers planning, building and operating solutions which are more sustainable and efficient than existing industrial processes.
Design Integrated Design for industrial processes in industries, such as manufacturing, refining, which can lead to significant energy savings and efficiency gains.
Materials Improvements in materials in industrial processes that will lead to more efficiency gains.
Efficiency Improvement is energy and water efficiency in industrial processes.
5.3.3 Transportation
Road Cleaner road transportation includes more efficient engines, alternative vehicle energy systems, as well as comprehensive road network planning and development.
Rail Cleaner rail transportation refers to energy efficient trains, electrification of railways and Optimized Railway Operations Management.
Air Cleaner air transportation includes Fuel Efficient Aircraft, well planned and constructed airport infrastructure and Optimized Air Traffic Management.
Water Cleaner waterway transportation covers Fuel Efficient Ships, well planned and constructed waterway infrastructure and Optimized Water Traffic Management.
Storage – Hydrogen, Fuel Cells, Batteries This sector includes hydrogen from the production, storage and trasportation of hydrogen, as well as the applications in which it can be used. Fuel cells can burn a variety of hydrocarbon fuels. Batteries are an important component for transportation, particularly for road.
5.4 Other Pollutants 5.4.1 Wastewater The Wastewater sector will focus on wasterwater treatment and biogas. However technologies include:
Asia Pacific Clean Tech Handbook 121 of 348 26-Apr-10 • Extraction Solutions - Solutions that help locate, access and extract water from underground sources.
• Desalination - Process that removes salt and other minerals from saline water, such as sea water, in order to make it suitable for human consumption or irrigation.
• Secondary Treatment Solutions - Solutions that substantially remove the biological content of sewage, including derivates of human waste, food waste, soaps and detergent.
• Sludge Treatment and Disposal - Solutions including dewatering, landfill storage and fertilizer conversion that treat sludge generated from wastewater treatment to remove usable substances and properly dispose of residual wastes.
• Tertiary Treatment Solutions - Solutions that provide a final treatment to raise the effluent quality of the water before it is discharged into the receiving environment.
• Improved Irrigation - Irrigation solutions such as sprinkler or drip irrigation that use water more efficiently than China’s conventional irrigation methods with equal or greater benefit to the user.
• Low-Flow Fixtures - Faucets and other water use systems that use less water that conventional systems but deliver the same or greater benefit to the user.
For an update on the Wastewater sector in Asia Pacific, see Section 6.11
5.5 Waste Waste management services including collection, recycling, energy from waste (including landfill gas and incineration), treatment and disposal. The focus will be on waste to energy technologies, primarily incineration and landfill gas.
For an update on the Waste sector in Asia Pacific, see Section 6.12
5.6 Service & Support 5.6.1 Private Sector Funding This includes Venture Capital Funds, Private Equity and Capital Markets. Asian financial capital markets are still quite nascent compared with their western counterparts.
5.6.2 Private Sector Services & Support The rapid growth of the clean energy industry will require the development of a complete sector of service companies dedicated to serving the needs of technology and equipment suppliers, owners of renewable energy and biofuels assets, and so on. In this sector we put providers of information and research, specialised clean energy financial services companies and consultants.
Asia Pacific Clean Tech Handbook 122 of 348 26-Apr-10 5.6.3 Government Agencies Government and quasi government agencies that support, sponsor and subsidize Clean Technology.
5.6.4 Universities Research and Development and Incubators set up for Clean Technology.
Asia Pacific Clean Tech Handbook 123 of 348 26-Apr-10 6 ENERGY SECTOR, BY COUNTRY 6.1 Wind 6.1.1 Background China became the world’s largest market for wind in 2009, with total capacity of nearly 26GW. The 2020 target for wind in China is expected to be raised from 30 GW to around 120GW. In 2008, wind provided less than 1% of China’s total electricity needs, but will form a key part of China’s push to produce 20% power from renewables by 2020.
Asia Pacific Clean Tech Handbook 124 of 348 26-Apr-10 Total Installed capacity (MW) Year 2005 2006 2007 2008 2009 2010T 2020T China 1,260 2,599 5,910 12,210 25,777 30,000 120,000 Japan 1,049 1,309 1,538 1,880 2,000 3,000 South Korea 119 176 192 278 300 2,25029 8,000 Taiwan 103,7 187,7 279,9 358 360 2,159 3,00030 India 4430 6270 7850 9587 10,926 Indonesia 0.8 0.8 1 1.2 2 97031 Philippines 25.2 25.2 25.2 25.2 30 Australia 708 817 824 1,306 1,400 NZ 168 171 322 326 350 Source: GWEC, IEA, Govt Publications, Estimates
6.1.2 Targets & Incentives China and India have the greatest installed capacity in APR. Japan is a notable laggard and is expected to fail to meet its 2010 target of 3 GW.
• China has put in place an aggressive renewable plan with increased its target for Wind Power by 2020. It has also highlighted wind, as a strategic sector to receive funding from the ‘made in China’ fiscal stimulus in 2009 and encouraged cheap financing to build up its domestic industry.
• India followed China, in its bid to set ambitious renewable targets, in a bid to build up its domestic industry.
6.1.3 Wind Supply Chain The wind supply chain can be broken down into turbines, blades, gearbox, components and operators.
The Europeans have traditionally dominated the wind manufacturing sector, with Vestas the global market leader. However, China has aggressively increased the number of manufacturers and encouraged loans and investments in this space. There are around 70 manufacturers in China alone which account for the oversupply in the wind sector.
29 2012 Target, IEA
30 2025 Government Target
31 2025 Government Target
Asia Pacific Clean Tech Handbook 125 of 348 26-Apr-10 Figure 6.2 – Wind Supply
Blades Gearbox Turbines Components Operators
China Tianjin CHST, Goldwind, Wafangdian China Wind Xinmao, Chongqing, Sinovel, Power,
Japan MHI, Fuji Komai Tekko Japan Wind Heavy Farm
S Korea Hyundai, Hyundai, Hyundai, Hyunjin Unison Daewoo, Daewoo, Daewoo, Materials,
Taiwan Formosa TECO China Steel Taipower Heavy Electric Machinery
India Suzlon Suzlon Suzlon, RRB Suzlon India Energy, ITC
Australia Infigen
Source: Company Reports, Thomson Reuters
6.1.4 Research & Development GE, Mitsubishi Electric <6503.T> and Enercon have been the traditional leaders in the wind sector with a number of patents filed. However, Mitsubishi Electric appears to be placing less emphasis in this sector. Enercon (Aloys Wobben) is a maturing small company that was a technology founder, but it has relatively few new inventions. Among smaller entities, the recent entrants are perhaps unexpected, emphasizing the utility of segmentation to find technical niches that ordinarily might be overlooked. Vestas Wind Systems is in litigation regarding its activity in this field. The academic-government entities at the top of the list show how heavily Chinese universities are invested in technology development.
Asia Pacific Clean Tech Handbook 126 of 348 26-Apr-10 % LARGER PRESENCE IN FIELD 06-08 97-08 RECE NT SHANGHAI JIUNENG ENERGY SCI & TECHNOLOGY 26 27 96 NTN CORP 42 45 93 GENERAL ELECTRIC CO 125 176 71 REPOWER SYSTEMS AG 52 75 69 NORDEX ENERGY GMBH 27 39 69 MATSUSHITA ELECTRIC WORKS LTD 26 50 52 FUJI HEAVY IND LTD 17 42 40 SIEMENS AG 18 53 34 HITACHI LTD 24 73 33 DAIWA HOUSE KOGYO KK 7 30 23 AERODYN ENG GMBH 5 36 14 MITSUBISHI ELECTRIC CORP 18 136 13 EBARA CORP 3 36 8 ENERCON - ALOYS WOBBEN 6 125 5 Source: Thomson Reuters Scientific
% SMALLER PRESENCE IN FIELD 06-08 97-08 RECE NT
DAUBNER & STOMMEL GBR BAUWERK-PLANUNG 10 10 100
WUJIANG FANGXIA ENTERPRISE INFORMATION CO 10 10 100
TAIHEIYO CEMENT CORP 9 11 82
KANZAKI KOKYUKOKI MFG CO LTD 6 10 60
CLIPPER WINDPOWER TECHNOLOGY INC 5 10 50
YANMAR DIESEL ENGINE CO 5 10 50
SKF AB 5 15 33
FJC KK 4 14 29
ZEPHAR KK 4 15 27
KANSAI DENRYOKU KK 2 10 20
SHISUTECH KK 1 12 8
VESTAS WIND SYSTEMS AS 1 18 6
TACKE WINDENERGIE GMBH 0 12 0
Source: Thomson Reuters Scientific
Asia Pacific Clean Tech Handbook 127 of 348 26-Apr-10 % ACADEMIC - GOVERNMENT 06-08 97-08 RECEN T
UNIV NANJING AERONAUTICS & ASTRONAUTICS 8 8 100
UNIV HEBEI AGRIC 5 5 100
UNIV HUAZHONG SCI & TECHNOLOGY 5 5 100
UNIV KANSAI 4 4 100
UNIV XIAN TECHNOLOGY 4 4 100
UNIV ZHEJIANG 4 4 100
CHINESE ACAD SCI ELECTRICAL ENG INSTITUTE 3 3 100
UNIV SHANGHAI JIAOTONG 25 29 86
UNIV SOUTHEAST (CN) 4 5 80
UNIV TOKAI GH 3 6 50
GH CHIKOJI GAKUEN 1 3 33
ENERGIE-UMWELT-BERATUNG EV INSTITUT 0 7 0
Source: Thomson Reuters Scientific
6.1.5 China
Market Size & Growth China leads the way in wind generation capacity and is now the second largest market, after the US in 2009.
In 2008, the newly-established National Energy Administration (NEA) highlighted wind energy as a priority for diversifying China’s energy mix. It selected six locations with the best wind resources: Xinjiang, Inner Mongolia, Gansu, Hebei and Jiangsu. Each site will have more than 10 GW of installed capacity by 2020, known as the ‘10 GW Size Wind Base Program’. The Wind Base projects will ensure more than 100 GW of installed capacity by 2020 and help in reaching the government’s National Mid and Long-Term Development Plan of 3% non-hydro renewable electricity production by 2020.
In addition, Wind was targeted as a strategic industrial sector in 2009 and due to a combination of government policy, financial incentives and access to cheap credit, this led to the establishment of 70-80 local providers32. By mid 2009, there was a concern of oversupply in the domestic market, combined with flagging demand in the European markets.
32 China Wind Energy Association
Asia Pacific Clean Tech Handbook 128 of 348 26-Apr-10 European manufacturers have complained that the bidding process for local contracts is opaque, claiming lopsided order wins from national concession projects.
Along with government policy, the Clean Development Mechanism (CDM) provides a further incentive to wind energy development in China.
Drivers & Constraints A constraint on the growth of renewable power is the ability of China’s grid system to cope and incorporate wind generated electricity. This rapid growth of installed power is far ahead of the national plan, and the grid connection which is still run by the Government, will be a constraining factor in the further expansion of wind power.
Market Players & Competition At the end of 2009, there were over 70 manufacturer operating in China. However, the top three manufacturers in China: Goldwind, Sinovel and DEC (Dongfeng Electric), dominate the market with an annual manufacturing capacity of 4 GW, while the international companies in China (Vestas, Suzlon, GE, Gamesa, Nordex and Repower) have similar capacity. This has already led to intense price competition and charges by the EU Chamber of Commerce in China that the new government projects favour domestic manufacturers. A summary of key domestic players are provided below:
Turbine Manufacturers • Xinjiang Goldwind <002202.SZ> - Goldwind is a leading wind turbine manufacturer in China, and develops, constructs and operates wind farms. It supplies various kinds of wind turbines ranging from 600KW to 1.5MW, and has 2.5MW, 3MW and 5MW class wind turbines in R&D. The company acquired a 70% stake of Vensys Energy, significantly enhancing its R&D capability and establishing a solid foundation for overseas expansion. For a detailed company profile, see Appendix A.
• Dongfang Electric <1072.HK, 600875.SS> is one of the leaders in power generation equipment, ranging from thermal, wind, hydro and nuclear power generation. It entered the wind power industry in 2004 by purchasing the user rights of turbine design for 1.5MW wind turbine from Repower and is developing 2MW, 2.5MW and 3MW class turbines. Dongfang Electric is the most vertically integrated domestic wind turbine manufacturer. For a detailed company profile, see Appendix A.
• Shanghai Electric <2727.HK, 601727.SS> launched its wind turbine business in early 2006 by purchasing 1.25MW turbine technology from Dewind. To date, it has produced small quantities of a 2MW direct drive turbine that it jointly designed with Aerodyn. It also has a 3.6MW offshore wind turbine at the R&D stage. In 2008, Shanghai Electric installed 178.75MW of turbines, accounting for 2.86% of the newly-increased wind power capacity in China. The company plans to achieve annual capacity of 100 units, 800 units and 180 units of 1.25MW, 2MW, and 3.6MW, respectively, in 2012. For a detailed company profile, see Appendix A.
Asia Pacific Clean Tech Handbook 129 of 348 26-Apr-10 • Huayi Electric Apparatus <600290.SS> primarily produces high-voltage apparatus and diversified into the wind power space in 2002. It has independently developed 780kW class turbines, using Aerodyn’s wind turbine technology and has jointly developed 1.5MW wind turbines. Furthermore, The R&D of 2.0MW/3.0MW wind turbines is underway. By 2010, the company aims to achieve capacity of 750MW.
• Xiangdian Electric <600416.SS> produces a broad range of wind turbine generators, and it made China’s first 1300KW wind turbine in 2005. In 2006, together with Japan’s Harakosan Xiangdian Electric, established Hara Xiangdian Windpower, which has the capacity to produce 300 units of 2MW direct-drive turbines in 2009.
• Sinovel
• Zhejiang Windey
• Guangdong Mingyang
• Jiangsu New Unite
• Chongqing Haizhuang
Asia Pacific Clean Tech Handbook 130 of 348 26-Apr-10 Aerodyn. It is also working on 5MW offshore turbine. The company has annual capacity of 1000MW turbines.
Gearbox • China High Speed Transmission <0658.HK> - China High Speed Transmission Equipment is a leading mechanical transmission equipment producer in China with a history dating back to 1969. It is a major supplier of mechanical transmission equipment for wind turbines in China. As well as wind power generation, it also produces equipment for marine vessels, rail transport, aerospace, metallurgy, petrochemicals, construction and mining. The wind gear transmission equipment sector was a major revenue contributor and key revenue driver in 2008. In 2007, China High Speed Transmission was listed on the Hong Kong Stock Exchange. For a detailed company profile, see Appendix A.
• Chongqing Gearbox
• Hangzhou Advance Gearbox
Blade Manufacturers • Zhonghang Huiteng
• China National Building Material <3323.HK> - China Composites Group is a subsidiary of China National Building Material (CNBM), which is mainly engaged in cement, lightweight building materials, glass fibre and products and engineering services. In 2007, it acquired NOI German and set up overseas company SINOI for capacity expansion and technology sourcing of wind turbine blades. The main blades produced by CNBM are 1.5MW and 2MW with a total annual capacity of 5000 pieces.
• Sinoma Science &Technology <002080.SZ> - Sinoma Science & Technology is involved in the research, design, manufacture and sale of specialty fibre composites in China, entered the wind blade business in 2006. Currently, the company can produce wind blades for 750KW, 850KW, 1.5MW and 2MW turbines, and believes it will be able to produce 1300 sets per year after completion of MW blade projects in late 2009.
Asia Pacific Clean Tech Handbook 131 of 348 26-Apr-10 Main Shaft Bearings • Wafangdian Bearing <200706.SZ> - Wafangdian Bearing is a leading bearing manufacturer in China. Its main products are industrial bearings, CV joints and precision ball screws, which are widely applied in transport, metallurgy, mining, and general machinery, petrol, and electric power. The company launched R&D on wind turbine bearings in 2006, and has developed full sets of bearings for wind turbines, including main shaft bearings. It has begun to produce main shaft bearings for wind turbines from 750KW to 3MW in batches while it has bearings for 5MW is at the R&D stage. In late 2009, the company expected to reach annual capacity of 6000 sets main shaft bearings.
6.1.6 Japan
Market Size & Growth Japan’s wind energy industry has grown in recent years, partly spurred by a government requirement for electricity companies to source an increasing percentage of their supply from renewables, as part of the new government’s mandate to reduce emissions by 25% by 2020. Development has also been encouraged by the introduction of market incentives, both in terms of the price paid for the output from renewable plants and in the form of capital grants towards clean energy projects. Power purchase agreements for renewables also have a relatively long lifespan of 15 to 17 years, which helps to encourage investor confidence. The result has been an increase in Japan’s installed capacity from 136 MW at the end of 2000 to 1,880 MW at the end of 2008. In 2008, 346 MW of new wind capacity was added in Japan. However, Japan trails behind both China and India, in terms of wind power installed.
Drivers & Constraints Japan has a target to reduce the level of its greenhouse gas emissions by 6%, compared with 1990 levels, in the period from 2008 to 2012; and now further has increased it reduction target to 25% by 2020. The official government target for wind power in Japan by 2010 is 3,000 MW but is unlikely to reach that target. The Japanese government introduced a Renewable Portfolio Standard (RPS) law in April 2003 with the aim of stimulating renewable energy to provide 12.2TWh (1.35%) of total electricity supply in 2010. RPS targets will be reviewed every four years, and a new target of 16.0 TWh (1.63%) by 2014 was established in 2007. However, the government has proposed a new renewable target of 20% by 2020.
Growth in the wind sector has been hampered by restrictions imposed by the incumbent utilitility companies that limit the amount of wind capacity that can be added to the grid, citingissues with intermittency.
Asia Pacific Clean Tech Handbook 132 of 348 26-Apr-10 Restrictions on Wind Power to the Grid
Utility Capacity Restriction %
Tokyo 60GW No restriction n/a
Kansai 37GW No restriction n/a
Chubu 33GW No restriction n/a
Kyushu 19GW 700MW (2006) 3.7%
Tohoku 16GW 520MW (2006) 3.25%
Chugoku 12GW 400MW (2005) 3.3%
Hokuriku 8GW 80MW (2006) 1%
Shikoku 7GW 200MW (2005) 2.9%
Hokkaido 6GW 50MW (2006) <1%
Okinawa 2GW 25MW (2006) 1.2%
Source: Institute for Sustainable Energy Policy
In addition, the restrictions are compounded by grid infrastructure, where leading areas for wind power in Japan are Tohoku and Hokkaido in the north of the country and Kyushu in the south. However, the greatest electricity demand is concentrated in the center of Japan, while most potential wind power sites are located in remote areas where grid capacity is relatively small.
Market Players & Competition Japan has placed less emphasis on the wind sector and has lost ground to international competitors, with foreign manufacturers such as Vestas, GE and Enercon dominating the Japanese market. Unlike the Solar PV market, the lack of ambitious targets and incentives – reflects the lack of commitment from Japanese industry in this space. This is also highlighted in the drastic drop in patent fillings by Japanese companies and so, despite its significant offshore wind energy potential, Japan has so far only developed 11 MW. The government has recently investigated the feasibility of offshore projects, and offshore wind measurements will start in 2009 under the NEDO project.
Turbine Manufacturers Japan’s four main wind turbine manufacturers are:
• Mitsubishi Heavy Industries <7011.T> MHI is one of Japan’s largest industrial manufacturers. It has six divisions, that include: Marine Vessel and Ocean Division; Machinery and Iron Structure Division; Aviation and Space Division and the Power Engine Division that includes the development of wind turbines. MHI has developed wind turbines a varying sizes, ranging from 250kW to 2,400kW and have manufactured more than 2,250 units globally, mainly the in the US. For a detailed company profile, see Appendix A.
Asia Pacific Clean Tech Handbook 133 of 348 26-Apr-10 • Fuji Heavy Industries <7270.T> Fuji Heavy Industries Ltd. is a Japan-based industrial manufacturing company engaged in four business segments: the Automobile segment; Industrial Machinery segment; the Aerospace segment; and Others segment, where the wind power generation systems are located.
• Japan Steel Works <5631.T> JSW’s Wind Power business uses technology from Europe, has the JSW J82 turbine and have installed over 30 units in Japan.
• Komai Tekko <5915.T> is a Japan-based manufacturing company. The Company operates in two business segments. The Steel Structure Products segment is engaged in the design, manufacture and installation of bridges, the construction and maintenance of steel bridges, the procurement of construction materials, the design, manufacture and erection of iron frames and iron towers, the design, manufacture and installation of construction and transportation equipment, the planning, design, construction and management of building works, as well as the provision of consulting services, among others.
6.1.7 South Korea
Market Size & Growth Korea has over 600MW of capacity installed by 2009 and is expected to increase significantly, due to the impetus of the “New Green Deal’ and the proposed wind generation capacity target of 2,250 MW by 2012, with 675MW (30%) allocated to offshore wind.
Drivers & Constraints South Korea will need to significantly increase its installation of wind capacity, in order to meet its 2012 target. In o2009, the government unveiled a plan to invest KRW 6 trillion (USD4.37 billion) in the next four years for investment in research and development of renewable energy in 2009. The aim of the funding is to close the technology gap with advanced countries across different sectors in the renewable energy space. Under the plan, the government and 73 local companies will support 15 key sectors to drastically boost domestic know how.
Market Players & Competition Wind was identified, as one the key sectors for the ‘New Green Deal’, with the country’s major companies participating.
• Hyundai Heavy Industries <009540.KS> The world's No.1 shipbuilder said in its first-half report in 2009, that it had chosen renewable energy as its new growth engine and was investing 105.7 billion won in the wind power business.
• Daewoo Shipbuilding & Marine Engineering <042660.KS> The world's No.2 shipbuilder announced in August that it would enter the wind power business, hoping its expertise in offshore plants and vessels would help it in maritime wind power development. It signed a deal to buy Dewind, a wind power turbine-making unit of U.S. Composite Technology Corp, for $50 million.
Asia Pacific Clean Tech Handbook 134 of 348 26-Apr-10 • Samsung Heavy Industries <010140.KS> The world's No.3 shipbuilder will spend 600 billion won on wind power generating facilities by 2015, aiming to generate 3 trillion won in revenue and enter the global top seven makers by that time, according to local media.
• Hyosung
6.1.8 Taiwan
Market Size & Growth There is currently around 400MW installed in 2009, mainly by Taipower.
Drivers & Constraints There is a government target of 3,000 MW (including 1,700 MW of off-shore wind power) for wind power by 2025 has been set by Ministry of Economic Affairs (MOEA) in 2007.
Market Players & Competition As part of the Wind Energy Industry Alliance, Taiwan has formed an alliance of domestic companies to work together to research and develop a domestic industry. The following companies include:
Turbines • TECO Electric & Machinery Co <1504.TW> had received GE Energy certification for 750 kW generator, and is working on 1.5 MW and larger generators. Teco is principally engaged in the manufacture and distribution of heavy electrical equipment and electrical control products, as well as home appliances and air conditioners.
Equipment • China Steel Machinery Corporation
Gearbox • Formosa Heavy Industries Corporation
6.1.9 India
Market Size & Growth As with China, India is experiencing a large growth in the wind sector. India added 1,800 MW of new wind generating capacity in 2008, taking the cumulative figure up to more than 9.6 GW. Wind power has been concentrated in a few regions, especially the southern state of Tamil Nadu, which accounts for 44% of India’s total wind capacity. Other states include: Maharashtra, Gujarat,
Asia Pacific Clean Tech Handbook 135 of 348 26-Apr-10 Rajasthan and Karnataka, West Bengal, Madhya Pradesh and Andhra Pradesh. This will result in annual capacity addition of up to 2,000 MW in the coming years.
Drivers & Constraints The Indian government’s stated target is for renewable energy to contribute 4-5% of total power generation capacity by 2012. This means that renewable energy would need to grow at a faster rate than traditional power generation, accounting for around 20% of the total added capacity planned in the 2008-2012 timeframe.
10 out of the 29 Indian states have now implemented quotas for a renewable energy share of up to 10% and have introduced preferential tariffs for electricity produced from renewable sources. These states are Kerala, Rajasthan, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh, West Bengal, Gujarat and Haryana. In addition, several states have implemented fiscal and financial incentives for renewable energy generation, including: energy buy back schemes and FiTs; preferential grid connection and transportation charges and electricity tax exemptions.
Market Players & Competition India has a solid domestic manufacturing base, dominated by Suzlon (accounting for over half of the market), Vestas Wind Tech and RRB. In addition, international companies have set up production facilities in India, including Enercon, Repower, Siemens and LM Glasfiber and the new entrants like ReGen Power Tech, WinWinD, Kenersys and Global Wind Power. India’s new ambitious renewable plan has stimulated the growth of the domestic manufacturing sector and companies source more than 80% of the components for their turbines in India.
Turbines • Suzlon
6.1.10 Singapore
Market Size & Growth
Due to its small size, Singapore has set itself up as a testbed for companies to set up operations and export products across the region. It has attracted international companies, such as Vestas, which is building a manufacturing plant to export across the region.
Asia Pacific Clean Tech Handbook 136 of 348 26-Apr-10 Drivers & Constraints Singapore does not have any suitable sites for Wind Power.
Market Players & Competition • Vestas
6.1.11 Indonesia
Market Size & Growth
The market in Indonesia is small, with less than 2MW of installed capacity. The major constraint is the relatively high cost and intermittency issues for wind power.
Drivers & Constraints
The government has focused its renewable targets on geothermal, small hydro and biomass projects and therefore wind will not make up a major part of the renewable portfolio mix in Indonesia. However a target of around 1GW has been proposed by 2025.
Market Players & Competition
The power market in Indonesia is dominated by PLN. There are some small IPP set up to provide off grid power supply.
3.1.12 Malaysia
Market Size & Growth The market in Malaysia is small, although there is a government survey underway in East Malaysia (Sabah) to assess the wind potential.
Drivers & Constraints
Wind power is not a priority in Malaysia, as it is expensive and intermittent, when compared with biomass and hydro projects.
Market Players & Competition There are no companies identified in this sector.
3.1.13 Thailand
Market Size & Growth The wind power market in Thailand is small and estimated to be less than 1MW.
Asia Pacific Clean Tech Handbook 137 of 348 26-Apr-10 Drivers & Constraints
Wind has been included in the 15 year Renewable Energy Master Plan to increase to 800MW by 2022 which will help drive growth in Thailand.
Market Players & Competition The Electricity Generation Authority of Thailand (EGAT) responsible for power generation and transmission. The Metropolitan Electricity Authority (MEA) responsible for distribution in Bangkok and vicinity and the Provincial Electricity Authority (PEA) responsible for distribution to the rest of Thailand. Companies involved in providing Wind Power to the grid include:
• National Wind Power Co., Ltd
• Thai Wind Power Co., Ltd
3.1.14 Philippines
Market Size & Growth
There is only an estimated 25MW of installed capacity in the Philippines. However, with the enactment of the RE Act, and award of new wind project, the market is expected to increase significantly.
Drivers & Constraints
While the Renewable Energy Act of 2008 (RE Act) put in place a regulatory framework for renewable energy in the Philippines, renewable energy is still focused on hydro and geothermal.
Market Players & Competition • Northpoint Wind Power
• UPC Asia Wind Management
• Korea East West Power
Asia Pacific Clean Tech Handbook 138 of 348 26-Apr-10 6.1.12 Australia
Market Size & Growth
Australia is now home to 50 wind farms, with a total capacity of close to 2GW in 2009, with six projects totalling 555 MW expected to be commissioned in 2009. This increase is driven by the Renewable Energy Target (RET). Additional wind energy projects that will provide a combined output of 5 GW have been proposed for development in all states of Australia. Most of these are either currently applying for, or have received, government planning approvals.
Drivers & Constraints
In 2007 the Australian Government committed to ensuring that 20% of Australia's electricity supply would come from renewable energy sources by 2020 by establishing the expanded national RET scheme. The national RET scheme will increase the existing MRET, which was introduced in 2001 with a target of 9,500 GWh by 2010, by more than four times, to 45,000 GWh in 2020. The wind sector is included in these targets and currently has the fourth largest installed capacity in Asia Pacific, after China, India and Japan.
Market Players & Competition
The wind industry has continued its work on the Certified Wind Farms Australia (CWFA) scheme, developed by the Clean Energy Council. A number of key wind energy companies in Australia have joined the CWFA, including Pacific Hydro, Roaring 40s, Wind Power and Wind Prospect. Wind companies on the ASX are:
Operators • Infigen Energy
• Transfield Services Infrastructure
• WHL Energy
Asia Pacific Clean Tech Handbook 139 of 348 26-Apr-10 United States. The Company focused on developing and commercializing energy assets including wind energy, solar, biomass and clean fossil fuels
• Viridis Clean Energy Trust I
6.1.13 New Zealand
Market Size & Growth
New Zealand has nine operating wind farms, with a combined installed capacity of 492.8MW33 and supplies about 3% of New Zealand’s annual electricity generation. A further 20 projects are in the process of development and could add over 1,000MW.
Site Developer Project Region RMA application status RMA application capacity publicly notified (MW) Awhitu Genesis 18 Franklin Consented after appeal April 2004 but on hold Titiokura Unison/Roaring Up to 48 Hastings Consented after appeal April 2005 40s Hawkes Bay Hawkes Bay Wind Up to 225 Hastings Consented after appeal May 2005 Farm Taumatatotara Ventus Up to 20 Waikato Consented but on hold Mahinerangi TrustPower Up to 200 Clutha Consented after appeal November 2006 Kaiwera Downs TrustPower Up to 240 Gore Consented after appeal November 2007 Project Hayes Meridian Up to 630 Central Otago Declined after appeal November 2006 Taharoa Taharoa C and up to 100 Kawhia Consented but appealed PowerCoast Project Central Meridian Energy Up to 130 Ruapehu and Consented but appealed July 2008 Wind Rangitikei Mill Creek Meridian Up to 71 Wellington Consented but appealed April 2008 Mt Cass MainPower Up to 69 Hurunui Application declined, June 2008 decision appealed Waitahora Contact Energy Up to 177 Southern Application declined, September Hawkes Bay decision appealed 2008
33 New Zealand Wind Energy Association
Asia Pacific Clean Tech Handbook 140 of 348 26-Apr-10 Hauauru ma raki Contact Energy Up to 540 Waikato Called in to a Board of September Inquiry, application 2008 publicly notified Mt Stuart Pioneer Up to 6 Clutha Applied for consent, December 2008 Generation application publicly notified Turitea Mighty River Up to 360 Manawatu Called in to a Board of January 2009 Power Inquiry, application publicly notified Long Gully Windflow / Mighty Up to 12.5 Wellington Consent granted, subject May 2009 River Power to an appeal period Te Rere Hau NZ Windfarms Up to 28 Manawatu Applied for consent, expansion application publicly notified Lulworth Energy 3 Up to 1 Marlborough Applied for consent, December 2009 application publicly notified Slopedown Wind Prospect Southland Not yet applied CWP Puketiro RES Wellington Not yet applied Source: NZ Wind Energy Association
A study completed for the Electricity Commission indicated that the country’s economic wind resource is sufficient to meet annual demand several times over. The study identified that areas with an annual wind speed of greater than about 8.5 m/s have the potential to generate over 50,000 GWh per year. An even larger resource was identified in the next band of wind speed, from 7.5 m/s to 8.5m/s. New Zealand’s total electricity generation in 2007 was 42,374 GWh.
While this wind energy potential is unlikely to be realised in full because of economic, environmental and community considerations, it is realistic for wind to generate 15 to 20% of electricity by 2025.
Drivers & Constraints
In New Zealand, wind farms do not receive subsidies. For this reason, wind farm developers will only build a wind farm if it can produce electricity at a cost that is competitive with other forms of generation.
Market Players & Competition
• Windflow Technology
Asia Pacific Clean Tech Handbook 141 of 348 26-Apr-10 Operators • New Zealand Windfarms
• Contact Energy
• Meridian Energy
• Mighty River Power
Asia Pacific Clean Tech Handbook 142 of 348 26-Apr-10 6.1.14 Summary of Companies in the Wind Sector Code Company Name Market PE Country Segment Cap (M Ratio Dollars) 200706.SZ Wafangdian Bearing Co Ltd $119.9 56.3 China Industrial Components China National Building Material Co Building Materials & 3323.HK Ltd $4,597.0 16.1 China Components Tianjin Xinmao Science & Business & Public 000836.SZ Technology Co Ltd $354.0 85.7 China Services Sinoma Science & Technology Co 002080.SZ Ltd $736.2 55.1 China Chemicals 044490.KQ Taewoong Co Ltd $1,148.8 40.4 South Korea Metals - Steel China High Speed Transmission 0658.HK Equipment Group Co Ltd $2,711.0 26.7 Hong Kong Machinery & Engineering 053660.KQ HYUNJIN MATERIALS CO LTD $306.4 14.2 South Korea Metals - Steel 7011.T Mitsubishi Heavy Industries Ltd $13,117.9 1238.5 Japan Machinery & Engineering
7270.T Fuji Heavy Industries Ltd $3,946.0 N/A Japan Automobiles 5631.T Japan Steel Works Ltd $4,333.1 21.6 Japan Machinery & Engineering WHN.AX WHL Energy Ltd $9.7 N/A Australia Energy Sources Energy Equipment & SUZL.BO Suzlon Energy Ltd $2,571.7 N/A India Services Xinjiang Goldwind Energy Equipment & 002202.SZ Science&Technology Co Ltd $6,799.1 26.6 China Services 600875.SS Dongfang Electric Corp Ltd $6,198.3 85.7 China Electrical & Electronics 601727.SS Shanghai Electric Group Co Ltd $15,133.2 48.8 China Machinery & Engineering Energy Equipment & 600290.SS Huayi Electric Co Ltd $672.8 23.2 China Services Xiangtan Electric Manufacturing Co 600416.SS Ltd $802.9 41.5 China Electrical & Electronics Doosan Heavy Industries & 034020.KS Construction Co Ltd $8,354.1 N/A South Korea Machinery & Engineering BHEL.BO Bharat Heavy Electricals Ltd $25,668.8 31.1 India Electrical & Electronics 2766.T Japan Wind Development Co Ltd $409.9 N/A Japan Multi-Industry
IFN.AX Infigen Energy Ltd $1,026.1 4.5 Australia Financial Services Transfield Services Infrastructure TSI.AX Fund $226.1 N/A Australia Financial Services VIR.AX Viridis Clean Energy Group $24.8 N/A Australia Financial Services Business & Public WTL.NZ Windflow Technology Ltd $10.3 N/A New Zealand Services NWF.NZ New Zealand Windfarms Ltd $21.9 N/A New Zealand Utilities-Electrical & Gas Unlisted Chongqing Gearbox Co., Ltd. N/A N/A China Gearbox Hangzhou Advance Gearbox Group Unlisted Co Ltd N/A N/A China Gearbox Zhonghang Huiteng Windpower Unlisted Equipment Co.Ltd N/A N/A China Gearbox Unlisted Sinovel Wind Co. Ltd. N/A N/A China Turbines Zhejiang Windey Engineering Co., Unlisted Ltd. N/A N/A China Turbines Guangdong Mingyang Electric Group Unlisted Co., Ltd. N/A N/A China Turbines Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 143 of 348 26-Apr-10 6.2 Solar 6.2.1 Background The solar sector consists primarily of Photo Voltaic (PV), followed by solar concentrator and solar used for water heating.
Up until 2006, this was effectively just a Japanese and German market, driven by government subsidies and feed in tariffs. The manufacturing is primarily based in APR, most notably Japan, China, South Korea and Taiwan. These countries have a tradition of high quality manufacturing in the silicon chip industry and have translated this expertise into the PV solar market. These countries also lead the Research & Development into this sector, as highlighted in the patent filing research – a proxy for Research & Development and a ‘statement of intent’ for countries and companies.
After a change in government, Japan has renewed its efforts to re-establish itself, as the largest PV market globally, with a new target for 2020 and 2030.
The most impressive country is China: from a virtual production of zero, it is expected to provide nearly half of all feedstock production in 2010. In addition, China has applied a similar approach it has applied in other manufacturing sectors to the PV Solar market and instituted a financial stimulus package to invest and allow banks to lend to domestic companies in the PV Solar market. This has also been coupled with the surprise increase in the PV solar market to 20GW by 2020 to further stimulate growth in the domestic market. It also dominates the Solar Water Heating market and accounts for two thirds of the total manufacturing globally.
India has also moved aggressively in this market, by proposing new aggressive targets for PV Solar, with a target of 1GW by 2012 and 20GW by 2022, which would make it the second largest market, after China. However, India does not have the same manufacturing expertise and Research & Development, as the Northern Asian countries and it is expected that China will be the main beneficiary of the increased demand in India, at least in the short term.
This has lead to a huge oversupply in the PV solar market, which will lead to some consolidation of the market and drive the move of production from the US and Europe to Asia. This move of manufacturing to low cost countries in Asia, such as China will accelerate the drive in costs down that should further facilitate the growth in the PV solar market.
Asia Pacific Clean Tech Handbook 144 of 348 26-Apr-10
Total Installed capacity (MW)
Year 2005 2006 2007 2008 2009 2010E 2020T China 20 40 300 1,500 30,000 Japan 1,421 1,708 1,918 2,144 2,600 3,000 14,000
Korea 13 35 81 357
India 1,000 20,00034 Malaysia 5 7 8 10 975
Thailand 20 25 40 60 120 150 50035 Australia 60 70 82 104 120
Source: IEA, Thomson Reuters, Government Publications
6.2.2 Targets and Incentives There are five main markets for PV solar in Asia Pacific, driven by targets and incentive schemes. Out of these, China, India and Japan will account for over 90% of the Asian market.
34 2022 Target, 5 Year Plan
35 2022 Target, Thailand 15 Year Energy Masterplan
Asia Pacific Clean Tech Handbook 145 of 348 26-Apr-10 • Japan - The Residential PV System Dissemination Program was the main driver for the growth in the PV solar market in Japan, until 2008. Incentives and subsidies have been put in place to continue the growth, with a target of 14GW installed capacity set for 2020 and 53 GW by 2030. Japanese companies have used its expertise in electronics and high end manufacturing to extend to the PV solar market, such as Sharp and Kyocera.
• China - The existing domestic installed base in China is miniscule compared with its domestic production capacity. China has turned to developing domestic demand in 2009 to help meet oversupply with the slump in overseas markets. In addition, the government has put in place a target of 30GW installed capacity by 2020, coupled with encouragement of loans to PV solar companies that has lead to the growth of over 30 domestic companies that will make China the number one PV market globally. By 2010, China is expected to account for nearly half the feedstock market, from a market of nearly zero a few years ago.
• India - India has followed China and set an ambitious target of 20GW installed capacity by 2022. Interestingly, India does not have the same domestic manufacturing market and Chinese companies are expected to be the main beneficiary of this increased demand. Unlike, its Northern Asian neighbours, India does not have the traditional expertise in high end manufacturing, nor research and development and intellectual property to create a domestic industry.
• South Korea - As with Japan, South Korea is leveraging its expertise in electronics and high end manufacturing to enter into this market. However, it is starting relatively late and will need to be able to differentiate itself from market leaders like Japan, to low cost competitors such as China.
• Taiwan - While Taiwan does not have a large domestic installed base, it is a key provider to the PV solar markets and has leveraged its capability in the electronics space.
• Australia - has set an ambitious renewable target of 20% by 2020, with solar playing a big part. Its government grant scheme has been the main driver for installation of PV solar into off grid residential homes and farms. It also has a FiT at the state level to promote and encourage solar power. While Australia is not a manufacturer of PV solar, due to its abundance of sunshine it is also looking into the PV solar concentrator market.
Asia Pacific Clean Tech Handbook 146 of 348 26-Apr-10 Figure 6.4 – PV Supply Chain
Feedstock Wafers & Cell & Module Equipment Ingots Manufacturing Manufacturers
China LDK, Tianwei, LDK Solar, Suntech, China Zhongsheng Solargiga Sunergy
Japan Tokuyama, SUMCO Sharp, Kyocera Mitsubishi Mat Kanematsu Sanyo, MHI
S Korea KCC, LG Chem Woongin Energy, KPE, Sinsung Nexolon Holdings
Taiwan Sino American, Motech, Gintech, Green Energy Eton
India Moser Baer, BHEL Tata Power
Source: Company Reports, Thomson Reuters
6.2.3 PV Supply Chain There are four basic steps in the manufacture and production of PV:
• Feedstock • Wafer & Ingots • Cell and Module Manufacturing; and • Final Assembly
Feedstock The main source of silicon feedstock for PV cells is polysilicon and the process is essentially the same as producing semiconductor grade silicon. However, the producers have simplified some steps in their processes for supplies to the PV industry. There are many attempts to replace the current expensive purification process, based on chemical gaseous purification, by cheaper alternatives including metallurgical purification (condensed phase).
The solar photovoltaic grade silicon feedstock supply was traditionally dominated by the three major producing countries: Germany, the US and Japan. However, China is expected to supply nearly half of the silicon feedstock by 2010, while Korea and India are also entering the market.
Ingots and Wafers Highly purified silicon is used to make single crystal silicon ingots, multi-crystalline silicon ingots or multi-crystalline silicon ribbons. The ingots are then cut into bricks or blocks and then sawn into thin wafers, whereas the ribbons are cut directly into wafers. Silicon ingots are of two types:
Asia Pacific Clean Tech Handbook 147 of 348 26-Apr-10 single crystal and multi-crystalline. The first type, although with different specifications regarding purity and specific dopants, is also produced for microelectronics applications, while multi- crystalline ingots are only used in the PV industry. Ingot producers are in many cases also producers of wafers. Norwegian, German, Japanese, Taiwanese, Korean and Chinese companies feature most prominently in this section of the industry supply chain.
Photovoltaic cell and module production Germany replaced Japan as the leading producer of photovoltaic cells during 2008. However, China is expected to be the market leader by 2010, with the aggressive targets and incentives put in place by the government.Taiwan accounted for some 830 MW to 900 MW of cell production, consolidating its position at number four in terms of national production behind China, Germany and Japan.
Equipment Manufacturing From a cost perspective, balance of system (BOS) components account for 20-70 % of the total system costs. Accordingly the production of BOS products has become an important sector of the overall PV industry. Particularly with the rapid expansion of the worldwide market for grid- connected PV systems, inverters are currently the focus of the interest.
PV Solar Concentration At present, concentrating solar power (CSP) technology can be exploited through three different systems:
• Parabolic Trough; • Parabolic Dish; and • Power Tower.
All the CSP technologies rely on four basic elements: concentrator, receiver, transport-storage and power conversion. The concentrator captures and concentrates direct solar radiation, which is then delivered to the receiver. The receiver absorbs the concentrated sunlight, transferring its heat energy to the power-conversion system. In some CSP plants, a portion of the thermal energy is stored for later use. The parabolic trough system, commonly known as the “Solar Farm”, uses linear parabolic mirrors to reflect sunlight. The parabolic dish system, generally known as a “Dish/Engine System”, collects sunlight through a round parabolic solar collector. The “Power Tower System” employs heliostats to concentrate sunlight onto a central tower- mounted receiver.
Parabolic trough plants are currently the most mature CSP technology. Power towers, with potentially low-cost and more efficient thermal storage, could offer dispatchable power from solar- only plants with a high annual capacity factor in the medium term.
Dish/engine systems will be used in smaller, high-value applications. In theory, power towers and parabolic dishes can achieve higher solar-to-electric efficiencies and lower costs than parabolic trough plants. Parabolic dish systems are the most efficient of all solar technologies, with currently about 25% solar-to electricity efficiency. The 4-95 stirling power conversion unit (PCU) now holds the world’s efficiency record for converting solar energy into grid-quality electricity, with
Asia Pacific Clean Tech Handbook 148 of 348 26-Apr-10 almost 30% efficiency at 1 000 watts per square metre. Because of their thermal nature, each of the CSP system technologies can be “hybridised”, or operated in combination with conventional fossil fuels. Hybridisation has the potential to dramatically augment the usefulness of CSP technology by increasing its dispatchability, improving its performance by making more effective use of power generation equipment, and reducing technological risk by using conventional fuel when needed. Hybridisation efforts are currently focused mainly on the parabolic trough, but the learning from these studies may be transferred to the other types of systems. The integrated solar combined-cycle system (ISCCS) design offers a number of potential advantages to both the solar plant and the combined cycle plant. For power tower systems, hybridisations are possible with natural gas combined-cycle and coalfired or oil-fired Rankine plants. Initial commercial-scale power towers will likely be hybridised with conventional fossil-fired plants. Because dish/engine systems use heat engines, they have an inherent ability to operate on fossil fuels. However, hybridisation for dish/engine systems is still a technological challenge.
Solar in Space The US and Japan are investigating ways to put solar arrays in space and transmit power down to the surface of the Earth, using microwaves. Mitsubishi Electric has put together a group of companies to research and development in this space.
6.2.4 Research & Development None of the larger players in this field have been as active recently as they were in the past Research in solar power was very intense in the periods 2000-2005, and has diminished, particularly in Japan. The largest holdings are with Canon, Sharp and Sanyo.
Some of the newer work among the smaller entities is focused on the use of less silicon and on improving thin films to increase the yield of electricity.
Academic and government interest in this area is less China-dominated, and includes institutions from the US, Japan, Switzerland, Germany and Korea as well. Research covers nanotubes and dye-enhanced solar cells.
Asia Pacific Clean Tech Handbook 149 of 348 26-Apr-10 The following table lists the number of patent filings by companies or entities:
% LARGER PRESENCE IN FIELD 06-08 97-98 RECENT
NTT FACILITIES KK 12 32 38
KYOCERA CORP 24 98 24
TOYOTA JIDOSHA KK 7 30 23
MATSUSHITA ELECTRIC WORKS LTD 12 69 17
SANYO ELECTRIC CO LTD 19 112 17
SHARP KK 24 143 17
MITSUBISHI ELECTRIC CORP 15 96 16
HITACHI LTD 5 52 10
SEKISUI CHEM IND CO LTD 5 81 6
CANON KK 7 175 4
KANEKA CORP 2 53 4
TOSHIBA KK 1 28 4
FUJI ELECTRIC CO LTD 1 40 3
Source: Thomson Reuters Scientific
% SMALLER PRESENCE IN FIELD 06-08 97-98 RECENT
MSK KK 6 8 75
SHINETSU HANDOTAI KK 3 9 33
TOPPAN PRINTING CO LTD 4 13 31
KONARKA TECHNOLOGIES INC 2 10 20
BRIDGESTONE CORP 2 11 18
BP CORP NORTH AMERICA INC 2 11 18
TDK CORP 1 9 11
NISSHIN ELECTRICAL CO LTD 0 12 0
JX CRYSTALS INC 0 10 0
HUGHES ELECTRONICS CORP 0 8 0
OMRON KK 0 8 0
YKK ARCHITECTURAL PROD KK 0 8 0
Source: Thomson Reuters Scientific
Asia Pacific Clean Tech Handbook 150 of 348 26-Apr-10
% ACADEMIC – GOVERNMENT 06-08 97-98 RECENT
UNIV CHICAGO 4 4 100
CHINESE ACAD SCI ELECTRICAL ENG INST 3 3 100
UNIV CALIFORNIA 3 4 75
UNIV TOHOKU 3 4 75
UNIV KYOTO 3 4 75
UNIV TOKAI GH 2 3 67
ECOLE POLYTECHNIQUE FEDERALE LAUSANNE 2 3 67
UNIV SHANGHAI JIAOTONG 2 5 40
UNIV NANJING AERONAUTICS & ASTRONAUTICS 1 3 33
KOREA ADV INST SCI & TECHNOLOGY 1 3 33
UNIV PRINCETON 1 3 33
FRAUNHOFER GESELLSCHAFT 2 8 25
KAGAKU GIJUTSU SHINKO JIGYODAN 0 6 0
DEUT ZENT LUFT & RAUMFAHRT EV 0 5 0
ZH KANAGAWA KAGAKU GIJUTSU ACAD 0 4 0
Source: Thomson Reuters Scientific
Samsung and TSMC are both among the top US patent holders for solar, along with Canon and Sharp. Samsung’s solar patent portfolio is focused on a wide range of thin-film technologies. TSMC recently formed a strategic alliance with Motech Industries and could be considering ways to squeeze more Watts out of traditional cells, which currently convert 16-18% of the sunlight that hits them into electricity, versus a theoretical limit of 30%.
6.2.5 China
Market Size & Growth While China is a global leader in the manufacturing of PV solar, its domestic market was relatively small, compared with domestic supply. This changed in 2009, with the slump in the growth of international markets and led to the government putting in aggressive domestic demand to drive domestic demand to compensate in the loss the export market.
Drivers & Constraints China has put in place a set of aggressive targets and incentives schemes to increase capacity in its domestic PV industry. In particular, key policy and targets include:
Asia Pacific Clean Tech Handbook 151 of 348 26-Apr-10 • The “Golden Sun Project” will subsidise 50% of the upfront cost for grid-connected solar systems (the bulk of demand) and 70% for off-grid. • The government has put in place an aggressive target of 30GW by 2020 and encouraged loans to finance new companies in 2009
PV solar manufacturers have benefited from the access to cheap finance in 2009, as part of China’s fiscal stimulus and the sheer scale of growth has been breath taking, with over 80 PV cell manufacturers in China. Invariably this has led to excess supply and there have been recent steps to control funding. Despite this, provincial and municipal governments still continue to build their own local renewables industries.
China has shown, as with other industries, how quickly it can ramp up and expand, when the right policies are aligned with incentives. Ultimately, sustained growth will depend on how central policy dictates are complemented by provincial and municipal interests.
Feedstock From virtually no production capability a few years ago, the Chinese feedstock sector now includes over 20 suppliers, driven by access to cheap finance. Companies include:
• LDK Solar
• Tianwei Sichuan Silicon Industry
• Zhongsheng Semiconductor
Ingots & Wafers There are over 140 ingot and wafer manufacturers listed in China. The largest producers include:
• Solargiga <0757.HK> Solargiga makes monocrystalline silicon ingots and wafers, key components for producing solar-power photovoltaic (PV) cells. It is the PRC’s second largest manufacturer of monocrystalline silicon ingots by output and sales. Sales are mainly to solar- wafer or cell manufacturers or traders, which include Isofoton, Sharp, Sumitomo and Suntech. For a detailed company profile, see Appendix A.
• Comtec Solar <0712.HK> Comtec Solar is principally engaged in the wafer producing business. Located in Nanhui district, Shanghai, the company has a wafer capacity of 200MW and expected to ramp up production to 500MW.
Asia Pacific Clean Tech Handbook 152 of 348 26-Apr-10 Cells and Module Manufacturing There are over 80 Cell and Module manufacturers in China alone, with a large oversupply in the market. The top 10 producers are highlighted below:
Company Name Code MW Produced Cell Technology
Suntech Power STP.N 1,000* Monocrystalline, Polycrystalline, Amorphous
Yingli Green Energy YGE.N 400* Polycrystalline
JA Solar JASO.O 425* Monocrystalline, Polycrystalline
Trina Solar TSL.N 200 Monocrystalline, Polycrystalline
Solarfun Power SOLF.O 360* Monocrystalline, Polycrystalline
China Sunergy CSUN.O 320* Monocrystalline, Polycrystalline
Eging Photovoltaic na 106 Monocrystalline
Canadian Solar na 103 Monocrystalline, Polycrystalline
Ningbo Solar na 90 Monocrystalline, Polycrystalline
Jiangyin Jetion S&T na 65 Monocrystalline, Polycrystalline
Source: Company Reports and websites
As PV prices are driven down globally, Chinese PV companies are expected to benefit, due to their low cost of manufacturing. In particular, Trina Solar has performed the best in 2009, as it is seen as a low cost leader.
• Suntech Power
• Trina Solar
• Yingli Green
Asia Pacific Clean Tech Handbook 153 of 348 26-Apr-10 • JA Solar
• Solarfun Power
• China Sunergy
6.2.6 Japan
Market Size & Growth The Japanese government has renewed its efforts to re-establish Japan as a global leader, after a brief hiatus in 2008 and has put in place and an action plan sets targets to increase the amount of installations of PV systems to 14 GW by 2020 and 53 GW by 2030.
Asia Pacific Clean Tech Handbook 154 of 348 26-Apr-10 During 2008 a total of about 225 MW of PV were installed in Japan, a slight increase on the 210 MW installed the previous year. The primary factor leading to the flat growth was the termination of the budget for the Residential PV System Dissemination Program. Most of these installations (around 221 MW) continued to be grid-connected distributed PV systems, with a further almost 4 MW comprising grid-connected centralized plants. In 2008 cumulative installed PV capacity in Japan exceeded 2 GW.
2008 represented an important milestone in Japan’s efforts to develop the institutional frameworks, policy support and budget enhancements necessary to accelerate the widespread installation of PV from around 2009 onwards.
Market Players & Competition Japanese companies are market leaders across the whole PV solar supply chain and the government’s renewed push in solar energy, will further promote investment into the sector.
In the area of solar-grade silicon and wafers, manufacturers have been increasing production capacities and expecting growth of future demand for solar cells.
Feedstock Market leaders for polysilicon feedstock in Japan include:
• Tokuyama <4043.T> is the one of the largest producers of polysilicon with production of around 8,200 tonnes. It supplies feedstock to SUMCO and built a plant in Malaysia to produce 6,000 tonnes. For a detailed company profile, see Appendix A.
• OSAKA Titanium Technologies <5726.T> manufactures and sells semiconductor products, such as polycrystalline silicon, high-purity titanium and titanium tetrachloride solution, as well as environmental- and energy-related products, such as silicon monoxide, photocatalysts, silicon powder and porous silicon. It produces about 1,500 tonnes a year of feedstock. For a detailed company profile, see Appendix A.
• Mitsubishi Materials <5711.T> is a Japan-based manufacturing company engaged in five main business segments: Cement segment, Copper segment, Aluminum segment and the Processing segment that includes the manufacture and sale of polycrystalline silicon feedstock. Mitsubishi Materials plans to increase polycrystalline silicon production by 1,000 tonnes to 4,300 tonnes a year by 2011
Asia Pacific Clean Tech Handbook 155 of 348 26-Apr-10
Wafers Market leaders in the wafer segment are SUMCO <3436.T>, which has constructed a new production facility aiming to achieve 1 GW/year production. Space Energy, which was acquired by Nippon Oil <5001.T> also increased production capacity to 8 million wafers/year.
Silicon wafer slicing companies such as Ishii Hyoki, TKX and Shinko Manufacturing are also enhancing production capacity, and Kanematsu Corporation has announced the establishment of a silicon wafer processing company.
• SUMCO <3436.T> Sumco Corporation is one of Japan’s leading manufacturing company that is mainly engaged in the high-purity silicon business. The Company operates through two business divisions. The Semiconductor Silicon Wafer division manufactures and sells various silicon wafers for semiconductors, including polished wafers, epitaxial wafers and special wafers. The Others division, through its subsidiaries, manufactures silicon wafers for solar batteries, and manufactures and sells high-purity quartz crucibles.
• Kanematsu <8020.T> Kanematsu Corporation is a Japan-based trading company. It operates in five business segments. The Information Technology (IT) segment provides semiconductors, semiconductor and crystalline liquid (LC) manufacturing equipment, electronic components, communication-related equipment and components and optical devices and has established a silicon wafer processing company.
Cell and Module Manufacturing • Sharp <6753.T> announced a series of plans to increase production of thinfilm silicon PV modules, starting from the completion of a new 160-MW production line for thin-film silicon PV modules at its Katsuragi Plant. Currently, a 1 000-MW/year thin-film silicon PV module plant is
Asia Pacific Clean Tech Handbook 156 of 348 26-Apr-10 under construction, on the premises of a plant for large-sized liquid crystal display panels in Sakai City of Osaka Prefecture, scheduled to start operation in 2010. Furthermore, Sharp announced a plan to construct a 480-MW/year plant to produce thin-film silicon PV modules through a joint venture with ENEL of Italy. For a detailed company profile, see Appendix A.
• Kyocera <6971.T> completed the expansion of its MieIse Plant and announced a plan to construct a new solar cell plant in Shiga Prefecture for the purpose of increasing the production capacity to 650 MW/year by 2011. For a detailed company profile, see Appendix A.
• Mitsubishi Electric <6503.T> plans to establish a production framework with the capacity of 600 MW/year by 2011. Alongside that, Mitsubishi will enhance its global sales networks and is also considering the commercialization of thin-film silicon solar cells.
• Kaneka <4118.T> revised up its plan to increase its domestic production capacity to 150 MW/year, along with construction of a new overseas production facility with the capacity of 200 MW/year. It has announced a plan to further increase production capacity to 1 GW/year by 2015.
• Mitsubishi Heavy Industries <7011.T> plans on increasing production capacity to 130 MW/year in 2010, and 250 MW/year in 2012.
The production facilities for PV cell/module in Japan are concentrated in the Kansai and Kyushu regions. As seen in the automobile and electronic industries, related industries have been established to produce a stable supply chain for solar cells.
Solar in Space Mitsubishi Electric <6503.T> and IHI Corp. <7013.T> will join a 2 trillion yen (USD $21 billion) Japanese project intending to build a giant solar-power generator in space within three decades and beam electricity to earth. A research group representing 16 companies, including Mitsubishi Heavy Industries Ltd. <7011.T>, will spend four years developing technology to send electricity without cables in the form of microwaves, according to a statement on the trade ministry’s Web site today. Japan is developing the technology for the 1-gigawatt solar station, fitted with four square kilometers of solar panels, and hopes to have it running in three decades, according to the trade ministry in August 2009. Being in space it will generate power from the sun regardless of weather conditions, unlike earth-based solar generators.
Transporting panels to the solar station will be prohibitively costly, so costs for transportation will need to be drastically reduced before the solar station can become commercially viable.
The trade ministry and the Japan Aerospace Exploration Agency, which are leading the project, plan to launch a small satellite fitted with solar panels in 2015, and test beaming the electricity from space through the ionosphere, the outermost layer of the earth’s atmosphere, according to the trade ministry document. The government hopes to have the solar station fully operational in the 2030’s.
Asia Pacific Clean Tech Handbook 157 of 348 26-Apr-10 6.2.7 South Korea
Market Size & Growth
A key goal of the Government’s 2003 second 10-year National Basic Plan for NRW (New and Renewable) Technology Development and Deployment is to supply 5% of domestic energy requirements through renewable and alternative energy sources by 2010, as well as produce 1GW of solar energy by 2012. Since the introduction of the Government’s feed-in-tariff policy in 2002, the number of photovoltaic installations has increased rapidly. However the 400MW of installed capacity may fall short of the 1GW target by 2012.
Drivers & Constraints As part of the “New Green Deal” in 2009, South Korea has embarked on a push into the Clean Tech space to increase its presence in this space and to leverage its expertise in manufacturing. This has led to companies like Hyundai Heavy Industries and Samsung entering into the market, leveraging its investment in research and development.
Market Players & Competition
Feedstock The main feedstock producer in South Korea is Dongyang Chemical Co (OCI) <010060.KS> has expanded their annual production capacity up to 16,000 tonnes in 2009. Other companies including, KCC corp., LG Chemical and Samsung Petrochemical are expected to start production of feedstock.
• Dongyang Chemical Co (OCI) <010060.KS> OCI Company Ltd, formerly DC Chemical Co., Ltd., is a Korea-based chemical company specialized in the areas of inorganic chemicals, coal and petrochemicals and fine chemicals processing business. It is the second largest feedstock producer in world, with an increased capacity of 16,000 tonnes, with the completion of its second Polysilicon plant in Gunsan.
• KCC Corporation <002380.KS> has a long term supply contract worth approximately US$100M for 6 years from 2008 to 2013 with Solar Power Industries of the US.
• LG Chemical <051910.KS> has created a subsidiary called LG Solar Energy which supplies polysilicon to LG Electronics to construct solar cells. It plans to manufacture approximately 520,000 solar modules a year using silicon wafers with a total capacity of 120MW.
Wafers Companies in the wafer segment include Woongjin Energy and Nexolon.
• Woongjin Energy
Asia Pacific Clean Tech Handbook 158 of 348 26-Apr-10 • Nexolon
Cells and Module Manufacturing
The largest manufacturers in Korea are Kyungdong Photovoltaic Energy (KPE), Hyundai Heavy Industry, Samsung Electronics and Millinet Solar. Other companies in this sector include: Sinsung Holdings, STX Solar, KISCO and Alti-Solar.
• Kyungdong Photovoltaic Energy
• Hyundai Heavy Industry <009540.KS> Hyundai Heavy Industries Co., Ltd. is the world largest ship builder and multinational conglomerate engaged in industrial manufacturing. As part of the “New Green Deal” in 2009, it has targeted the PV Solar market, as a sector for new growth.
6.2.8 Taiwan
Market Size & Growth While Taiwan is one of the top 5 global producer in the PV Solar market, its domestic market is only about 20MW due to a lack of incentives or targets.
Taiwan has a Solar Water Heater (SWH) incentive in place and is one of the largest domestic markets with an estimated 2.15 million m2 by 2010.
Drivers & Constraints In April 2009, the “New Trillion Dollars Energy Industry Flagship Plan” and the “Green Energy Industry Sunrise Plan” put in place plans for Taiwan to produce 20% of the global supply of the PV solar market. However, the “Renewable Energy Development Act” announced on 8th July 2009, is the first attempt to develop the domestic solar photovoltaic industry and it mainly includes the incentives related to the setup of the solar photovoltaic systems such as feed- in tariff rate and equipment subsidy.
Market Players & Competition There are 7 silicon ingot & wafer firms, 45 PV solar cell & module firms and 29 downstream system installation firms in Taiwan that include:
• Motech Industries Inc <6244.TWO> Motech Industries, Inc. is engaged in the manufacture and distribution of solar cells. The Company also provides power supply machines, signal generation machines, communication transmission wire testing machines, radio frequency (RF) training systems, inductance and capacitance impedance testing machines, asymmetric digital subscriber line (ADSL) testing machines, solar portable power boxes, solar power converters and others. The Company also offers consulting, integrating, technical development and training services of solar power generation systems. Top contract
Asia Pacific Clean Tech Handbook 159 of 348 26-Apr-10 chipmaker TSMC <2330.TW>
• E-TON Solar Tech. Co Ltd <3452.TWO> is primarily engaged in development, manufacture and distribution of solar cells. The Company provides four-inch single crystalline solar cells, five-inch single crystalline solar cells, five-inch multi crystalline solar cells, six-inch single crystalline solar cells and six-inch multi crystalline solar cells. For a detailed company profile, see Appendix A.
• Gintech Energy Corp <3514.TW> specializes in the development and manufacture of solar cells. The Company's major products include six-inch multicrystalline and monocrystalline solar cells, as well as five-inch multicrystalline and monocrystalline solar cells. The Company's solar cells are mainly applied in power generation plants, residential buildings, solar electronic bicycles, battery chargers, watches and others. For a detailed company profile, see Appendix A.
• Green Energy Technology Inc <3519.TW> is engaged in manufacture and distribution of solar silicon wafers and solar silicon ingots. The Company provides 5-inch multi-crystal solar silicon wafers, 6-inch multi-crystal solar silicon wafers, 5-inch mono-crystal solar silicon wafers, 6-inch mono-crystal solar silicon wafers, multi-crystal silicon ingots and thin film solar modules, among others. Its products are applied in manufacture of solar photovoltaic modules. Green Energy Technology announced that it will invest USD 6.16 million in a Weifang-based new energy technology company in Mainland China in September 2009.
• Sino-American Silicon Products Inc <5483.TWO> is primarily engaged in manufacture and sale of silicon wafers and ingots. The Company provides silicon ingots, polished wafers, non- polished wafers, high-power electronic wafers, diffused wafers, mono crystalline wafers, multi crystalline wafers and sapphire polished wafers, among others. Its products are applied in manufacture of integrated circuits (ICs), diodes, power devices and photovoltaic products. For a detailed company profile, see Appendix A.
• Wafer Works Corp <6182.TWO> is engaged in the development, design, manufacture and distribution of semiconductor silicon wafers and ingots, as well as solar silicon wafers and ingots. The Company also provides double-sided polished wafers, thin wafers and epitaxial wafers, as well as optoelectronic products such as sapphire wafers. The Company's semiconductor silicon wafers and ingots are mainly applied in the processing and design of integrated circuits (ICs). For a detailed company profile, see Appendix A.
• Tainergy
Asia Pacific Clean Tech Handbook 160 of 348 26-Apr-10 Summary of Analyst Consensus for Taiwanese PV Solar Sector Mkt Cap PE Consensus Mean No. of Value Analysts Company Name Code (Mill) Updated
Motech Industries Inc 6244.TWO NT$41,704 269.08 HOLD 3.26 19 Dec 2009
Green Energy HOLD 2.67 3 Technology 3519.TW Dec 2009
E-TON Solar Tech 3452.TWO HOLD 3.43 7 Dec 2009
Gintech Energy Corp 3514.TW
Sino-American Silicon NT$25,532 52.53 OUTPERF 2.44 10 Products 5483.TWO ORM Dec 2009
Wafer Works Corp 6182.TWO
Source: Thomson Reuters
6.2.9 India
Market Size & Growth India, like China has ambitions to capture a significant share of the global solar manufacturing industry and this is unlikely to be achieved in the absence of a significant domestic market.
Drivers & Constraints India’s government is set to announce its National Solar Mission with targets for solar capacity addition to be around 1GW by 2012 and 20GW by 2022. This New Mission should add to the
Asia Pacific Clean Tech Handbook 161 of 348 26-Apr-10 existing FiT put in place by the MNRE in 2008, which set a maximum of 15 INR/kWh (< 0,25 EUR/kWh) guaranteed for no more than 10 years and capped at 50 MW of capacity.
In addition, in 2009, the State governments have offered discrete support for PV. At the start of the year, Gujarat announced its Solar Power Policy 2009 initiative, targeting installation of 500 MW of solar power plant over the next five years.
This should be a benefit for domestic providers such as Moser Baer, Tata Power and new entrants like BHEL and Bharat Electronics.
India has a Ministry focused on New and Renewable Energy (MNRE). The MNRE programs have resulted in the installation of an estimated 5 MW of street lighting systems, 450 000 home lighting systems, 730 000 solar lanterns and over 7 000 PV pumps.
Estimates by the European PV Industry Association suggest that some 28 MW of new PV capacity were installed in India in 2008, corresponding to a total installed capacity of over 160 MW.
Market Players & Competition • Moser Baer
• Tata Power
• Bharat Heavy Electricals
• Bharat Electronics
Asia Pacific Clean Tech Handbook 162 of 348 26-Apr-10 6.2.10 Singapore
Market Size & Growth The capacity for solar power in Singapore is limited. However a solar testbed has been started to trail new PV technologies at demonstration sites.
Drivers & Constraints The Singapore Government has ambitions to build the nation into a ‘Clean Energy Hub’ and has already been successful in attracting significant investment from major international PV businesses to establish manufacturing capacity in the country. On the implementation side, a ‘Solar Capability Scheme (SCS)’ has been initiated providing up to one million SGD (30 % to 40 % of the total capital cost of PV projects) for projects promoting innovative design and integration of solar technologies into energy efficient buildings
Market Players & Competition • REC
6.2.11 Indonesia
Market Size & Growth The market for PV Solar in Indonesia is negligent, as the cost of generation is mauch higher, compared with geothermal, hydro and biomass.
Drivers & Constraints Indonesia is focused in three renewable areas: geothermal, small hydro and biomass. However, a target of 870MW in solar capacity has been proposed by 2025.
Market Players & Competition There are no companies identified.
6.2.12 Malaysia
Market Size & Growth Malaysia plans to introduce a FiT scheme in the 10th Malaysian Plan (2011 – 2015) for renewable energy market acceleration. By 2011, Malaysia aims to achieve 217 MW of renewable energy in the electricity supply system, with PV contributing 7 MW; by 2015 the corresponding figures are 975 MW and 55 MW; and by 2030 renewable energy is expected to represent 13% (3 484 MW) of total system capacity.
By the end of 2008 Malaysia had a total installed PV capacity of about 9 MW, of which 776 kW (54 installations) were grid-connected. The largest installation is the 362 kW system at the Enterprise Four Building at Technology Park Malaysia. During 2008 there were over 135 kW of grid-connected systems installed and an estimated 1 625 kW of offgrid systems. Of the 24 new grid-connected installations in 2008, two were for office buildings and 22 for residences. The two commercial buildings made up 40 % of the total installed grid-connected PV capacity in 2008.
Asia Pacific Clean Tech Handbook 163 of 348 26-Apr-10 Drivers & Constraints The main market driver for grid-connected PV systems is the financial incentive program provided by SURIA 1000, based on a bidding process that spreads over six calls with the final call ending 1st December 2009. Other incentive programs are the Demonstration Category (providing 25 % capital incentive for a total of 200 kW) and Showcase (providing 100 % capital incentive for a total of 100 kW). Both programs have been fully awarded. By the end of 2008, SURIA 1000 had completed four of the six calls, with the following results: a total of 342 kW of PV installed (compared with the target of 300 kW); 13 % drop in the price of grid-connected PV systems; and, by the fourth call, bidders’ willingness to pay reaching 51.8% of total system price, up from 46.7% during the first call.
During August 2008 the Government of Malaysia announced an exemption on import duty and sales tax for PV systems – this should decrease the price of PV systems by 5 % to 10 %. Companies continued to enjoy the double tax allowances (investment tax and capital allowances) announced in the previous year’s budget.
The cumulative installed capacity of grid connected PV systems in Malaysia is expected to reach 980 kW to 1 MW by the end of 2009. The cumulative capacity of off-grid PV systems is expected to reach about 10 MW by this time.
Market Players & Competition Foreign companies dominate the domestic market, with 5 firms established in Malaysia: First Solar Inc at the Kulim Hi Tech Park (KHTP), SunPower Corp in Malacca, ReneSola in Johor Baru, Q-Cells in Selangor Science Park 2, and the Japanese firm Tokuyama Corp in Sarawak.
Three public-listed companies in Penang, P. I.E. Industrial Bhd, Ire-Tex Corp Bhd, and Pentamaster Corp Bhd, have recently invested in Solar to tap into the growing market demand for solar products in the country and in the world.
6.2.13 Thailand
Market Size & Growth The Thai PV market is around 100MW in installed capacity by 2009 and expected to rise to 250MW by 2011.
Drivers & Constraints A PV Solar target of 500MW has been proposed by 2022, as part of the 15 year Renewable Energy Masterplan.
Market Players & Competition Solartron Public Company Limited is Thailand’s leading solar module manufacturer. Solartron holds about 80% of the domestic market share, with an annual production of 30MW.
Asia Pacific Clean Tech Handbook 164 of 348 26-Apr-10 6.2.14 Philippines
Market Size & Growth
There is only an estimated 25MW of installed capacity in the Philippines. However, with the enactment of the RE Act, and award of new wind project, the market is expected to increase significantly.
Drivers & Constraints
While the Renewable Energy Act of 2008 (RE Act) put in place a regulatory framework for renewable energy in the Philippines, renewable energy is still focused on hydro and geothermal.
Market Players & Competition • SunPower Philippines Manufacturing Limited (SPML), was the first semiconductor fab in the Philippines and the first large-scale, solar cell facility in Southeast Asia, established in 2004. The plant will initially turn out 25MW per year of high-efficiency silicon solar cells to meet the increasing worldwide demand for clean, reliable solar electric power systems.
6.2.15 Australia
Market Size & Growth The total installed capacity in Australia reached 104.5 MW in 2008. The largest installed capacity of PV in Australia is for off-grid industrial and agricultural applications.
Drivers & Constraints The market for PV installations connected to the main electricity grids continues to increase and represented the largest market for PV in 2008. The majority of installations took advantage of a government grant program under the “Solar Homes and Communities Plan” (SCHP) which contributed up to 80 % or more of up-front capital costs. The main applications are rooftop systems for private residences, schools and community buildings. Commercial and light industry sector interest is also growing, with support available to selected projects through the Solar Cities Program. All grid-connected PV systems can create Renewable Energy Certificates for the Renewable Energy Target. While, there are no National FiT, there are FiT set at the State level, which range from $0.2 to $0.6 per kWh
Australian Government support programs impacted significantly on the 2008 PV market, contributing funding towards 74 % of PV capacity installed over the year. The SCHP provided rebates up to 8 000 AUD for 1 kW of PV installed on residential buildings and up to 50 % of the cost of PV systems up to 2 kW installed on community buildings. From late 2009, the rebate is expected to be replaced by extra Renewable Energy Certificates from the Renewable Energy Target.
Whilst there is no specific national PV program, there are a number of key PV support mechanisms which drive the Australian market. These include the Solar Homes and Communities Plan, the Renewable Remote Power Generation Program (RRPGP) which has
Asia Pacific Clean Tech Handbook 165 of 348 26-Apr-10 provided 50% of off-grid renewable energy system costs, with the aim of reducing diesel fuel use, but now has restricted grants to smaller systems via a AUD 200,000 cap; the Solar Cities program, which is creating a useful driver for PV installations for the next 5 years, particularly in the otherwise neglected commercial sector; and the Solar Schools program, which could see the installation of 20 MW of PV over the next 8 years. The majority of small PV systems installed create Renewable Energy Certificates (RECs) under the Renewable Energy Target (RET) scheme.
Market Players & Competition There is only one module manufacturer in Australia – BP Solar, which produces its own cells and modules from imported wafers. Solar Systems manufacture concentrator PV systems using imported cells, but is in the process of setting up cell manufacture in Australia. There are a number of Australian manufacturers of inverters, battery charge controllers and inverter/chargers, particularly catering for the off-grid system market, including Selectronics, Plasmatronics, Latronics and Solar Energy Australia. Some of these manufacturers also supply inverters suitable for grid interconnection. Inverter prices typically range from AUD 0.5 – 1.5 per W. Although some battery components are made in Australia, only a few companies manufacture complete solar batteries. These include Exide’s Energystore products and Battery Energy’s Suncycle range. Battery Energy, in conjunction with the Commonwealth Scientific & Industrial Research Organisation (CSIRO), has also developed a solar gel battery, Sungel.
• Selectronics
• Plasmatronics
• Latronics
Solar Concentrators • SunSeeker Energy
6.2.16 New Zealand
Market Size & Growth The PV Solar market in New Zealand is small and no data found on installed capacity.
Drivers & Constraints PV Solar is not a focus for Renewable Energy targets in New Zealand.
Asia Pacific Clean Tech Handbook 166 of 348 26-Apr-10 Market Players & Competition • BP Solar
6.2.17 Summary of Companies in PV Sector Code Compay Name Market Cap PE ratio Country Sector (M Dollars)
SunSeeker Energy SSE.NZ (Australasia) Ltd $13.1 N/A New Zealand Energy Sources
7966.T LINTEC Corp $1,539.4 21.5 Japan Misc. Materials & Commodities
7911.T TOPPAN PRINTING CO Japan Business & Public Services LTD $6,229.4 N/A
3402.T TORAY INDUSTRIES Japan Textiles & Apparel INC $7,918.0 N/A
5816.T Onamba Co Ltd $76.0 17.8 Japan Electrical & Electronics
6826.T HONDA TSUSHIN Japan Electronic Components & KOGYO CO LTD $40.9 N/A Instruments
6941.T YAMAICHI Japan Electronic Components & ELECTRONICS CO Instruments LTD $80.8 N/A
6804.T Hosiden Corp $960.9 8.6 Japan Industrial Components
5331.T NORITAKE CO LTD $452.8 N/A Japan Industrial Components
5108.T BRIDGESTONE CORP $13,763.4 1149.3 Japan Industrial Components
5202.T Nippon Sheet Glass Co Japan Misc. Materials & Commodities Ltd $1,965.6 N/A
5201.T Asahi Glass Co Ltd $13,093.6 58.2 Japan Misc. Materials & Commodities
010060.KS OCI Co Ltd $3,764.0 10.0 South Korea Chemicals
3800.HK GCL-poly Energy 10.0 Hong Kong Utilities-Electrical & Gas Holdings Ltd $3,867.2
4043.T Tokuyama Corp $1,967.8 19.9 Japan Chemicals
5711.T Mitsubishi Materials Japan Metals - Non Ferrous Corp $3,656.1 N/A
5726.T OSAKA Titanium 110.7 Japan Metals - Non Ferrous technologies Co Ltd $1,278.0
051910.KS LG Chem Ltd 11.2 South Korea Chemicals $13,838.3
4091.T TAIYO NIPPON SANSO $3,634.8 23.1 Japan Chemicals
Asia Pacific Clean Tech Handbook 167 of 348 26-Apr-10 CORP
4183.T Mitsui Chemicals Inc $3,147.5 N/A Japan Chemicals
5411.T JFE Holdings Inc $24,401.9 N/A Japan Metals - Steel
002380.KS KCC Corp 9.9 South Korea Building Materials & $3,297.4 Components
4204.T Sekisui Chemical Co Ltd $3,699.5 81.2 Japan Chemicals
CMH.TO Carmanah Technologies Energy Sources Corp $32.6 N/A Canada
6753.T Sharp Corp $13,202.4 N/A Japan Appliances & Households
6971.T KYOCERA CORP Electronic Components & $18,141.2 N/A Japan Instruments
7011.T Mitsubishi Heavy 1238.5 Machinery & Engineering Industries Ltd $13,117.9 Japan
6503.T Mitsubishi Electric Corp $19,005.4 N/A Japan Electrical & Electronics
6764.T SANYO Electric Co Ltd $10,096.3 N/A Japan Appliances & Households
3452.TWO E-TON Solar Tech. Co Electronic Components & Ltd $511.9 N/A Taiwan Instruments
3514.TW Gintech Energy Corp Electronic Components & $909.3 N/A Taiwan Instruments
5483.TWO Sino-American Silicon 47.4 Electronic Components & Products Inc $743.3 Taiwan Instruments
6244.TWO Motech Industries Inc 208.3 Electronic Components & $1,471.9 Taiwan Instruments
BAJE.BO Bharat Electronics Ltd 15.4 India Electronic Components & $3,703.5 Instruments
BHEL.BO Bharat Heavy Electricals 31.1 India Electrical & Electronics Ltd $25,668.8
CSUN.O China Sunergy Co Ltd $180.0 N/A China
ESLR.O Evergreen Solar Inc Electronic Components & $261.9 N/A China Instruments
JASO.O JA Solar Holdings Co Electronic Components & Ltd $794.6 N/A China Instruments
MOSR.BO Moser Baer India Ltd 3792.5 India Data Processing & $281.4 Reproduction
SOLA.L ReneSola Ltd $417.1 N/A China Electrical & Electronics
SOLF.O Solarfun Power Holdings Electronic Components & Co Ltd $336.0 N/A China Instruments
Asia Pacific Clean Tech Handbook 168 of 348 26-Apr-10 STP.N Suntech Power Holdings 29.8 Electrical & Electronics Co Ltd $2,654.0 China
TSL.TH Trina Solar Ltd 14.8 Electronic Components & $1,612.4 China Instruments
TTPW.BO Tata Power Co Ltd $7,042.5 29.1 India Utilities-Electrical & Gas
WESL.BO Websol Energy Systems 38.6 India Utilities-Electrical & Gas Ltd $56.8
YGE.TH Yingli Green Energy Electronic Components & Holding Co Ltd $1,783.5 N/A China Instruments
002218.SZ Shenzhen Topraysolar 155.2 Data Processing & Co Ltd $1,002.1 China Reproduction
0155.HK China Solar Energy Financial Services Holdings Ltd $178.9 N/A Hong Kong
0750.HK China Singyes Solar 12.3 China Energy Equipment & Services Technologies Holdings Ltd $253.0
4118.T KANEKA CORP $2,260.4 22.2 Japan Chemicals
DSTI.O DayStar Technologies Electronic Components & Inc $11.4 N/A USA Instruments
0712.HK Comtec Solar Systems Energy Equipment & Services Group Ltd $295.1 N/A China
0757.HK Solargiga Energy Holdings Ltd $402.8 N/A Hong Kong
3436.T SUMCO CORP Electronic Components & $5,222.4 N/A Japan Instruments
3519.TW Green Energy 26.3 Taiwan Electronic Components & Technology Inc $393.6 Instruments
6182.TWO Wafer Works Corp Electronic Components & $438.9 N/A Japan Instruments
5981.T TOKYO ROPE MFG CO Industrial Components LTD $436.1 N/A Japan
8020.T KANEMATSU CORP $351.0 10.3 Japan Wholesale & International Trade
6890.Q Ferrotec Corp $317.5 N/A Japan Electrical & Electronics
6336.T ISHII HYOKI CO LTD $101.4 N/A Japan Machinery & Engineering
Unlisted Selectronics N/A N/A Australia Battery chargers
Unlisted Plasmatronics N/A N/A Australia Battery chargers
Unlisted Latronics N/A N/A Australia Battery chargers
Unlisted Solar Energy Australia N/A N/A Australia Battery chargers
Asia Pacific Clean Tech Handbook 169 of 348 26-Apr-10 Unlisted Mitsubishi Aluminum N/A N/A Japan BOS/Back Sheets
Unlisted Mitsubishi Plastics N/A N/A Japan BOS/Back Sheets
Unlisted Toyo Aluminium N/A N/A Japan BOS/Back Sheets
Unlisted Mitsui Chemicals Fabro N/A N/A Japan BOS/EVA
Unlisted C.I. Kasei N/A N/A Japan BOS/EVA
Unlisted M. Setek N/A N/A Japan Feedstock
Unlisted Dongyang Chemical Co N/A N/A South Korea Feedstock
Samsung Petrochemical Unlisted Co N/A N/A South Korea Feedstock
Unlisted Space Energy N/A N/A Japan PV Cells and Modules
Unlisted BP Solar N/A N/A Australia PV Cells and Modules
Unlisted STX Solar N/A N/A South Korea PV Cells and Modules
Unlisted Millinet Solar N/A N/A South Korea PV Cells and Modules
Unlisted KISCO N/A N/A South Korea PV Cells and Modules
Unlisted Alti-Solar N/A N/A South Korea PV Cells and Modules
Unlisted Solar Systems N/A N/A Australia PV Concentrator
Unlisted Woongin Energy N/A N/A South Korea Wafers
Unlisted Nexolon Co N/A N/A South Korea Wafers
Unlisted Sinsung Holdings N/A N/A South Korea Wafers
Source: Thomson Reuters
6.3 Biofuel 6.3.1 Background Unlike other renewable sources, the biofuel sector is used primarily for the transportation industry, as opposed to power generation. The biofuel sector is also contentious as it is heavily linked to the agricultural industry and has become highly politicized and can be argued that there is only marginal improvement to existing fossil fuels, as it releases carbon dioxide into the atmosphere. Having said that, biofuels, can be broken down into the following major categories:
• Ethanol generated from cereals, grains, sugar crops and other starches, which can be used either as a motor fuel in pure form or blended in gasoline. Leading producers in the world are the US and Brazil. For Asia, bioethanol produced from Cassava has been generated in refineries in China.
• Bio-diesel generated from oil-seeds such as palm oil, jatropha, rapeseed, soybean and even microalgae and converted into methyl esters and used in pure form or blended with diesel.
Asia Pacific Clean Tech Handbook 170 of 348 26-Apr-10 The major market for bio-diesel is the EU, which the major global diesel market. Biodiesel from Palm Oil is the leading process in Asia, with Malaysia and Indonesia the leading producers. Jatropha is another biodiesel crop gaining acceptance in Asia, particularly in India, as it does not require valuable land used for agriculture and can grow in poor non arable land. Both Japan, China and Korea are researching the development and commercialization of biodiesel generated from algae.
• Fuel generated from cellulosic materials, including grasses, trees, and various waste products from crops, wood processing facilities and municipal solid waste. However, this process is yet to become commercially viable.
6.3.2 Targets & Incentives • China has a target of 10 million tonnes by 2020 for ethanol and 2 million tonnes for biodiesel by 2020. China has a ban on biofuels produced from grains, so it appears that it will have to import, due to the shortfall in domestic production to meet its 2020 targets.
• Japan has a target of 500,000 KL (0.43 million tonnes by 2010) and estimates a total capacity of 5.2 million tonnes by 2030, if cellulosic ethanol is commercially viable.
• India has a 20% target by 2017, which equates to around 11 to 12 million tonnes of biofuel.
• South Korea has a 20% biodiesel mandate and 3% ethanol mandate by 2012, which should increase demand to 0.7 million tones by 2012.
• Taiwan has a 1% mandate for biodiesel blending into diesel and 3% mandate for ethanol blending into gasoline, which will equate to about 0.4 million tonnes of biofuel demand.
• Australia has in place blending mandates set at the state level, with Queenland, Victoria and Western Australia setting a 5% target and NSW setting a 10% blending mandate for ethanol by 2011. Demand is likely to increase to around 0.3 to 0.4 million tonnes of biofuel in 2010.
• New Zealand has a 2.5% blending mandate by 2010 that equates to around 0.14 million tonnes per year demand for biofuels.
• Indonesia has a blending mandate for biofuels that increase to 20% by 2025 for biodiesel and 15% for ethanol. This equates to 2.7 million tonnes by 2020. However, it is not clear how Indonesia can achieve this target, when there are no clear incentives for industry to produce biofuels and gasoline is heavily subsidized.
• Malaysia has a capacity of 1.7 million tonnes, primarily for export. The Biofuel Act passed in 2007, will be the main driver for biofuel demand in Malaysia and mandate a 5% blend of palm oil into diesel. However, the Act has been put on hold.
• Thailand has a 20% blending rate for gasoline and 2% blending rate for diesel. Demand is expected to increase to 0.8 million tonnes in 2010.
Asia Pacific Clean Tech Handbook 171 of 348 26-Apr-10 • Philippines has a 5% blending mandate for ethanol and 2% blending rate for biodiesel (that may be raised to 3%). Philippines has to import ethanol to meet demand and the government is looking to increase domestic demand and to stop importation over fours years.
Asia Pacific Biofuel Market (Million Tonnes per year) Country 2009 2010E 2015E 2020E China 2.1 3.2 5* 12 Japan 0 0.43 0.8* 2* S Korea 0.3 0.32 0.7 1* Taiwan 0 0.4 0.4 0.4 India 0.12 0.2 5* 11.5 Indonesia 0.03 0.7 1.66 2.73 Malaysia 1.5 1.7 1.7 1.7* Thailand 0.1 0.8 1* 1.2* Philippines 0.37 0.4* 1.5* 4.8 Australia 0.22 0.31 0.3* 0.3* NZ 0.14 0.14 0.15* 0.15* Total 4.88 8.6 18.2 37.8 Source: EIA, Government Publications, Estimates
Asia Pacific Clean Tech Handbook 172 of 348 26-Apr-10 6.3.3 Biofuel Supply Chain Figure 6.9 - Biofuel Process
Feedstock Fermentation Product By
Sugarcane Crushing Yeast, microbes Distillation Bioethanol Bagasse
Grain Milling Yeast, microbes Distillation Bioethanol Animal Feed
Waste
Cellulose Pre-treatment Hydrolysis, Distillation Bioethanol
Pre-treatment Separation Biodiesel Palm Oil Methanol, catalyst
Jatropha
Alage
Sugar to Bioethanol In order to produce ethanol from sugar crops, the feedstock must first be processed to remove the sugar through crushing, soaking and chemical treatment. The sugar is fermented to produce alcohol, using yeasts and other microbes. A final step distils the ethanol to the desired concentration and removes water to produce “anhydrous ethanol” that can be blended with gasoline. In the sugar cane process, the crushed stalk of the plant, the “bagasse”, consisting of cellulose and lignin, can be used for process energy in the manufacture of ethanol.
Grain to Bioethanol The grain-to-ethanol production process starts by separating, cleaning and milling the starchy feedstock. Milling can be “wet” or “dry”, depending on whether the grain is soaked and broken down further either before the starch is converted to sugar (wet) or during the conversion process (dry). In both cases, the starch is converted to sugar, typically using a high-temperature enzyme process. The next stages in the process are similar to that for sugar crops, where sugars are fermented to alcohol using yeasts and other microbes. A final step distils the ethanol to the desired concentration and removes water. The grain to-ethanol process also yields several co- products, such as protein-rich animal feed (e.g. distillers dry grain soluble, or DDGS) and in some cases sweetener, although this varies, depending on the specific feedstock and process used.
Biodiesel Biodiesel from fatty acid methyl esters (FAME) can be produced by a variety of esterification technologies, though most processes follow a similar basic approach. First the oil is filtered and pre-processed to remove water and contaminants. If free fatty acids are present, they can be removed or transformed into biodiesel using pre-treatment technologies. The pre-treated oils and
Asia Pacific Clean Tech Handbook 173 of 348 26-Apr-10 fats are then mixed with an alcohol (usually methanol) and a catalyst (sodium or potassium hydroxide). The oil molecules (triglycerides) are broken apart and reformed into esters and glycerol, which are then separated from each other and purified to produce biodiesel.
Cellulose to Bioethanol The first step in converting biomass to ethanol is pre-treatment, involving cleaning and breakdown of materials. A combination of physical and chemical processes are applied, which allows separation of the biomass into its cellulose, hemicellulose and lignin components. Some hemicellulose can be converted to sugars in this step, and the lignin removed. Next, the remaining cellulose is hydrolysed into sugars, the major ‘saccharification’ step. Common methods are dilute and concentrated acid hydrolysis. Research is currently focused on the development of biological enzymes that can break down cellulose and hemicellulose. The first application of enzymes to wood hydrolysis in an ethanol process was to simply replace the cellulose acid hydrolysis step with a cellulose enzyme hydrolysis step. This is called ‘separate hydrolysis and fermentation’ (SHF). An important process modification made for the enzymatic hydrolysis of biomass was the introduction of ‘simultaneous saccharification and fermentation’ (SSF), which has recently been improved to include the co-fermentation of multiple sugar substrates. In the SSF process, cellulose, enzymes and fermenting microbes are combined, reducing the required number of vessels and improving efficiency. As sugars are produced, the fermentative organisms convert them to ethanol. Finally, researchers are now looking at the possibility of producing all required enzymes within the reactor vessel, thus using the same “microbial community” to produce both the enzymes that help break down cellulose to sugars and to ferment the sugars to ethanol. This is known as “consolidated bioprocessing” (CBP).
Algae to Biodiesel
Biofuel can be made from Algae and does not use land that would be used for agriculture. The first step is photosynthesis, where the algae and other photosynthetic organisms capture carbon dioxide and sunlight and convert it into oxygen and biomass. Studies show that algae can produce up to 60% of their biomass in the form of oil. Companies looking to commercialise Algae use Photobioreactors that pumpinutrient-laden water through plastic tubes that are exposed to sunlight. There is also work to use Wastewater to provide the nutrients to Algae.
6.3.4 China
Market Size & Growth
Ethanol China’s fuel ethanol production is forecast to rise to 1.70 million tonnes in 2009, an increase of 8%, compared to 2008 and is produced in 5 plants. Due to the ban by the government on use of grain based feedstock, any new domestic production will need to come from other feedstock such as cassava and jatropha.
Asia Pacific Clean Tech Handbook 174 of 348 26-Apr-10 Summary of Bioethanol Production in China Location Company Name Principal Estimated 2008 2009 Supply Location Feedstock Production (Province, City) Production (MT/year) Capacity Heilongjiang, China Resources Corn/Rice 180,000 180,000 Heilongjiang Alcohol Co. Zhaodong Jilin, Jilin Jilin Fuel Ethanol Corn 470,000 500,000 Jilin Co. Liaoning Henan, Nanyang Henan Tian Guan Wheat 410,000 450,000 Henan Fuel-Ethanol Co. Hubei (9 cities) Hebei (4 cities) Anhui, Bengbu Anhui BBCA Corn 400,000 440,000 Anhui Biochemical Co. Shandong (7 cities) Jiangsu (5 cities) Hebei (2 cities) Guangxi Guangxi COFCO Cassava 120,000 200,000 Guangxi Bio-Energy Co. Total 1,580,000 1,770,000 Source: USDA Foreign Agriculture Service
Biodiesel Overall annual biodiesel production capacity in 2008 is estimated at 3 million tonnes, however actual biodiesel production in 2008 is estimated at 250,000 MT. Feedstock for biodiesel production is scarce in China, given that China is a net importer of vegetable oils such as soy and palm oil for food consumption. Currently, the main feedstock is waste cooking oil from restaurants, which is difficult to collect on a commercial scale for biodiesel production. Sinopec and CNOOC have signed deals with Indonesia to produce biodiesel in Indonesia to make up for the shortfall in domestic production.
Summary of Biodiesel Production in China Company Name Location Production Capacity (MT)
China Biodiesel International Holding Fujian Province 100,000 Co., LTD
Wuxi Huahong Biofuel Company Jiangsu Province 100, 000
Hainan Zhenghe Biofuel Energy Hebei Province 300,000 Company
Gushan Environmental Energy Limited Sichuan, HeBei, Fuzhou, Beijing 340,000
Total 840,000
Source: USDA Foreign Agriculture Service
Asia Pacific Clean Tech Handbook 175 of 348 26-Apr-10 Summary of Jatropha Demonstration Plants in China Participants Location Production Capacity (MT)
Petro China Sichuan Province 60,000
SinoPec Guizhou Province 50,000
CNOOC Hainan Province 60,000
Total 170,000
Source: USDA Foreign Agriculture Service
Drivers & Constraints China announced a revised biofuel target in 2009, as part of its renewable energy push for 2020 and expects to increase production by 10 times for bioethanol and by 40 times for biodiesel. It aims to increase this production from a variety of non-food related sources including cassava and ethanol from cellulose, as the government has put a ban on grain based fuel ethanol production in 2007.
However, the sector’s future domestic growth will be constrained by limited feedstock supplies, which compete with land use for grain production for ethanol and competition for oilseed feedstock for biodiesel. According to government policy, cassava, sweet potato, and sweet sorghum are viewed as potential feedstock for new ethanol plants and Jatropha for biodiesel. Due to the potential shortfall in domestic supply, China may need to import, if it wants to achieve its 2020 targets and the recent investments by Sinopec and CNOOC in Indonesia in 2009, reflect a response to secure more supply from other countries.
China 2005 2010 2020 Bioethanol 1 MT 3 MT 10 MT Biodiesel 0.05 MT 0.2 MT 2 MT
Source: Government Publications
Market Players & Competition China’s major oil refiners, Sinopec, CNOOC and PetroChina are the major providers of biofuels to the Chinese market.
• Sinopec <0386.HK>,<600028.SS> has teamed up with China's COFCO and Novozymes
Asia Pacific Clean Tech Handbook 176 of 348 26-Apr-10 • China National Offshore Oil Corporation
• CNPC <0135.HK> signed a total cooperative framework agreement on the development of biomass energy with China National Forest Bureau. Starting in 2007, both parties will launch one jatropha curcas demonstrating base with a scale not less than the raw material supply needed for an annual biodiesel output of 20,000-30,000 tons in Yunnan and Sichun respectively. The scale of CNPC’s plantation base in Yunnan might reach 400,000 mu this year. CNPC will actively participate in the development of biomass energy, said Jiang Jimin, President of CNPC. Its annual production capacity of non-grain ethanol will exceed 2 million tons, with an annual 200,000 tons of biodiesel from forests in a commercialized scale together with more than 400,000 hectares of a raw material biomass energy base by the end of 2011.
Bioethanol • China Resources Alcohol Corporation
• Jilin Fuel Ethanol Co.
• Henan Tianguan Enterprise Group Co., Ltd
• Anhui BBCA Biochemical Co <000930.SZ> processes 3 million tons of corn per year, with fuel ethanol, citric acid, L-lactic acid, ethylene oxide, amino acids, fats, fruit juice, gluten meal, fiber feed and other products. For a detailed company profile, see Appendix A.
• Guangxi COFCO Bio-Energy Co.
Biodiesel • China Clean Energy
Asia Pacific Clean Tech Handbook 177 of 348 26-Apr-10 Using this proprietary process, the Company began producing biodiesel in 2005 and commenced selling biodiesel commercially starting in December 2005. The Company has completed construction of its 100,000 tonnes biodiesel plant in Jiangyin in China's Fujian Province.
• Gushan Environmental Energy Limited
• China Biodiesel International Holding Co., Ltd
• Hebei Zhenghe Biodiesel Co Ltd
• Fujian Zuoyue New Energy Co.Ltd
• Wuxi Huahong Biofuel Company
Algae • Guodian Power Company <600795.SS> is one of the largest power producers in China. It signed a $10million deal with Israeli firm Seambiotic entering into a joint venture to commercialize the cultivation of microalgae using carbon dioxide captured from its power plants.
• Shanghai Jun Ya Yan Technology Development Company
Asia Pacific Clean Tech Handbook 178 of 348 26-Apr-10
6.3.5 Japan
Market Size & Growth Japan has a biofuel target of 500,000 KL/year for Crude Oil equivalent by 2010. This is split into a target for ethanol of 210,000KL/year and bio-diesel of 290,000KL/year. A proposal in 2007, states that a target of 6 million KL/year can be achieved by 2030.
Drivers & Constraints The “Biomass Nippon Strategy,” was unveiled by the government in December 2002 and updated in 2008. Given Japan’s limited agricultural resources, the focus was on cellulosic biofuel as the future for its biofuel production. Several ministries are involved in setting Japan’s bio-fuels policy: The Ministry of Economy, Trade and Industry (METI), the Ministry of Agriculture Forestry and Fisheries (MAFF), the Ministry of Environment (MOE), the Ministry of Education, Culture, Sports, Science and Technology (MEXT), the Ministry of Land, Infrastructure and Transport (MLIT), and the Ministry of Internal Affairs and Communications (MIC).
In February 2007, the Executive Committee on Biomass Nippon Strategy released a report titled “Boosting the Production of Biofuels in Japan.” The report presented to the Prime Minister states that Japan will be able to produce 6 million KL of biofuels by 2030.
In 2008 the government introduced tax incentives to encourage the use of bioethanol. If a fuel contains 3% bioethanol, the gas tax is lowered by ¥1.6 per liter (approximately USD .02) and is effective until March 31, 2013.
With respect to bio-diesel, the government decided that the blending ratio of Fatty Acid Methyl Ester (FAME) into diesel should be less than 5%, in order to ensure that the fuel meets safety and gas emissions standards for existing vehicles in the market.
Asia Pacific Clean Tech Handbook 179 of 348 26-Apr-10 Market Players & Competition The major players in the biofuel sector in Japan are Mitsubishi Heavy Industries and Nippon Oil, working in private public partnerships with various agricultural co-operative across the country.
Ethanol Japan has started a number of public private partnerships to promote the production of bioethanol. The two projects are:
Grain Based • The public-private partnership is between Mitsubishi Corp. and Hokuren (the federation of agricultural cooperatives) in Shimuzucho, Hokkaido. These are expected to become the first commercially-viable ethanol plants in Japan with a planned annual production of 15,000 KL, which will be used to produce ETBE. A third facility in Obihiro City, Hokkaido is run by the Tokachi Foundation and is supported by prefectural and national funds. The foundation runs a very small still that converts Hokkaido-grown wheat into ethanol to fuel a single test vehicle. The equipment is all state of the art, expensive, and on a miniature scale. The Foundation says that this is a proof of concept project intended simply to see whether they could produce ethanol from wheat to fuel the vehicle.
• A public-private partnership is with Zen-noh in Niigata. It uses high yield rice grown specifically for biofuel production (800 kg/1000 m2 vs 500 kg/m2 for food use rice). The project began in 2006 using fallow land set aside in MAFF’s acreage reduction plan. Early this year the facility has begun to produce 1000 kl of bioethanol. The ethanol is used as part of an E3 blend and started to be sold at 20 affiliated gas stations around Niigata prefecture this March.
• In addition, there are ten more ethanol facilities nationwide including one in Okinawa using sugar cane as the fuel stock. All those are small-scale built for bioethanol verification projects supported by the government.
Cellulose • Mitsubishi Heavy Industries <7011.T> has constructed a bioethanol demonstration plant located in Hyogo Prefecture to produce ethanol for automobile fuel from soft cellulose vegetation, such as rice straw and wheat straw that do not compete with food supply. The plant was developed jointly with Hakutsuru Sake Brewing and Kansai Chemical. The company expects the biofuels produced could be sold at a price less than JPY90 (USD 1.04) per litre by the end of 2010.
• Nippon Oil <5001.T> is also leading a consortium of Japanese firms, including Mitsubishi Heavy, Toyota and others to develop low-cost cellulosic ethanol. The consortium, which also includes Toray Industries, Kajima and Sapporo Breweries subsidiary Sapporo Engineering, aims to produce 200m litres of bioethanol per year by March 2014 at a cost of JPY 40 (USD 0.44) per litre by 2015.
• Biomass Energy Corporation
Asia Pacific Clean Tech Handbook 180 of 348 26-Apr-10 (also known as inedible biomass) into green fuels such as liquefied bio-methanol without the participation of oxygen. Transcu is the major shareholder of the company.
Biodiesel In May 2006, Nippon Oil Corporation <5001.T> and Toyota Motor Corporation announced that they jointly developed a palm oil-based bio-diesel that performs comparably to gasoline. They claim to have removed the oxygen from the palm oil, which would normally cause the fuel to degrade. Nippon Oil aims to develop a commercially viable bio-diesel by 2010.
• Nippon Shokubai Co. Ltd
6.3.6 South Korea
Market Size & Growth There are 8 registered biodiesel facilities in Korea with a total production capacity of a little over 300,000 tons annually. MOCIE forecasts that biodiesel production will expand to 700,000 tons by 2012/13.
Production
Korea’s Biodiesel Mid & Long Term Production Plan Year % Blend KL Tonnes
2007 0.5 % 90,000 79,200
2008 1.0 % 180,000 158,400
2009 1.5 % 270,000 237,600
2010E 2.0 % 360,000 316,800
2011E 2.5 % 450,000 396,000
Source: The Ministry of Knowledge and Economy (MKE)
Asia Pacific Clean Tech Handbook 181 of 348 26-Apr-10 Korea’s Biodiesel Producers Company Name Annual Capacity Feedstock (KL) KAYA Energy Co., Ltd. 100,000 Soybean Oil & recycled cooking oil Ecoenertech 33,000 Recycled cooking oil Dansuk Industrial Co., Ltd. 60,000 Soybean oil BND Energy 50,000 Soybean Oil & recycled cooking oil 3M Safety 48,000 Soybean oil BDK 33,000 Soybean Oil & recycled cooking oil Mudeung Bioenergy 6,000 Recycled cooking oil Biodiesel Energy 9,000 Soybean oil CNG 9,000 Recycled cooking oil Samwoo Oil Chemical Co., Ltd. 12,000 Recycled cooking oil Next Oil 99,000 Soybean oil Enertech Inc. 80,000 Palm oil & Soybean oil Bio Doil Korea 12,000 Soybean Oil & recycled cooking oil SK Chemicals 34,000 Palm oil Aekyung Petrochecmical Co., Ltd. 32,000 Soybean oil BND Kunsan 50,000 Soybean Oil & recycled cooking oil Total 667,000 Source: The Ministry of Knowledge and Economy (MKE)
Drivers & Constraints South Korea is planning to introduce a renewable fuel standard system, which would mandate the use of biofuels for vehicles, by 2013. Under the new system, the minimum proportion of biodiesel fuel contained in gasoline would grow to double digits. Currently petrol in Korea only contains 1.5% of vegetable oil or animal fat-based diesel fuel. If successful the move would be a breakthrough for the use of renewable energy in Korea.
When a pilot scheme was launched by the Ministry of Commerce, Industry and Energy (MOCIE) in 2002, to ensure that petrol contained 20% biodiesel fuel, it was met by strong opposition from oil refiners and carmakers regarding its quality. In 2007, the government had planned to raise the content ratio to 3% by 2012.
Market Players & Competition
Ethanol • Kumho Petrochemical <011780.KS> and biotechnology firm Biosystems have signed an agreement to build a 125m-litres per year ethanol plant in South Jeolla Province. The USD 176m plant will be constucted in the city of Yeosu by 2013, with a 4000-litres per day pilot plant to be built by 2011.
Asia Pacific Clean Tech Handbook 182 of 348 26-Apr-10 Biodiesel • Next Oil Co. Ltd.
• Enertech Inc.
6.3.7 Taiwan
Market Size & Growth Taiwan’s annual motor vehicle demand for gasoline is 10.5 million KL and 4.5 million KL for diesel. Taiwan’s demand for crude oil is met by imports and it imports 1.2 million barrels of crude oil a year.
Taiwan has set a compulsory goal to use B1 diesel starting July 2008 and B2 diesel in 2010. Taiwan has also set a goal to use E3 gasoline to replace MTBE in 2011. This equates to a demand for biodiesel is estimated at 45,000 KL for B1 diesel and 315,000 KL for E3 in 2011.
There are four biodiesel plants manufacturing biodiesel and there are several biodiesel plants are under construction.
While there is no domestic ethanol produced from feedstock, Taiwanese authorities support several bio-fuels research projects. They are considering ethanol produced from sugarcane, sweet potato and other biomass from agricultural wastes and the MOEA pilot scheme of 3,000T/year.
Drivers & Constraints Small and fragmented land holdings in Taiwan greatly increase the cost of field crop production, harvest, and transport. This will make it difficult to develop a viable bio-fuels sector in Taiwan, without large subsidies. In-spite of these obstacles, Taiwan has developed a bio-fuels policy that requires certain levels of biofuel to be blended into existing gasoline and diesel supplies.
The demand for biodiesel is estimated at 45,000 KL for B1 diesel. However, Taiwan only produces 6,500 KL of biodiesel from recycled cooking oil. The rest demand must be sourced from domestically grown energy crops. Taiwan has selected soybean and sunflower as two major energy crops to grow on fallow rice paddy fields. Taiwan’s Council of Agriculture (COA) provides supports to farmers per hectare NT$45,000 according to the current green payment to farmers who set aside their rice paddy for fallowing and oil seeds are sold to contracted biodiesel plants at NT$12 per kilogram according to current soybean import price level.
Market Players & Competition No companies identified in this sector.
Asia Pacific Clean Tech Handbook 183 of 348 26-Apr-10 6.3.8 India
Market Size & Growth
Bioethanol India is one of the worlds leading producers of sugarcane and sugar. The government is trying to encourage sugarcane juice/sugar molasses usage for ethanol production to diversify farmer’s income stream. Current production is only around 50 million liters. However, production would need to increase to 1-2 million tonnes of ethanol to meet the new target.
Biodiesel Bio-diesel production efforts are focused on using non-edible oils from plants such as Jatropha and other tree borne oilseeds. The focus is to encourage the use of wastelands and other unproductive land for the cultivation of these relatively hardy “new” bio-fuel crops. An estimated 55.3 million hectares are considered wasteland in India, which could be brought into productive use by raising bio-diesel crops.
There are about 20 large capacity plants (one to fifty tons per day) that produce bio-diesel from edible oil waste (unusable oil fractions), animal fat and non-edible oil with production estimates ranging anywhere between 100 to 200 million liters per year. However, production would need to increase to 10 million tonnes of biodiesel to meet the new target.
Drivers & Constraints The Indian government is expected to approve the national biofuels policy in 2009 to target 20% blended biodiesel by 2017.
Ethanol The commercial production and marketing of ethanol-blended gasoline started in January 2003, when the Ministry of Petroleum and Natural Gas launched the first phase of the Ethanol Blended Petrol (EBP) program that mandated blending of five percent ethanol in gasoline in nine states (out of a total of 29) and four union territories (UT) (out of a total of 6).
The second phase of the EBP program was announced in September 2006 that mandated 5% blending of ethanol with gasoline, subject to commercial viability in 20 states and eight Union territories. This involved the production of 1.4 billion liters of ethanol. However, as of April 2009 only 35% had been supplied.
The government had initially planned to launch the third stage of the EBP from October 1, 2008 to raise the percentage of the blend ratio. However, due to the short supply of feedstock, the government has deferred the implementation of the third phase of the EBP. Currently, the government does not allow use of imported ethanol for the EBP program as the focus is on developing domestic production capacities.
Biodiesel In April 2003, the government launched a National Mission on Bio-diesel that identified Jatropha as the most suitable tree-borne oilseed for the production of bio-diesel, and focused on promoting plantations of Jatropha on “wastelands”. The government’s Planning Commission set an
Asia Pacific Clean Tech Handbook 184 of 348 26-Apr-10 ambitious target of 11.2-13.4 million hectares to be planted with Jatropha by 2012, in order to produce sufficient bio-diesel to blend at 20% with petro-diesel.
New Policy The National Bio-fuel Policy formulated by the Ministry of New and Renewable Energy has been announced on December 2009. Key features of the proposed new policy are:
• An indicative target of 20% blending of petrol and diesel with bio-fuels by 2017
• Promote biodiesel production from non-edible oilseeds in waste/degraded/marginal lands
• Discourage plantations in fertile, irrigated premium farm land
• Focus on domestic production of bio-diesel feed stock and not permit imports
• Recommend minimum support prices for bio-fuel crops like Jatropha and other non-edible oilseeds with provisions of periodic revisions
• Recommend a minimum purchase price for the purchase of ethanol based on the cost of production and import price. The biodiesel price will be based on the prevailing price of diesel
• Take steps to ensure unrestricted movement of bio-fuels within and outside states.
• Removal of taxes and duties on bio-diesel
• Set up of an inter-ministerial National Bio-fuel Coordination Committee under the Chairmanship of the Prime Minister and a Bio-fuel Steering Committee under the Chairmanship of the Cabinet Secretary for high level coordination and policy guidance or review on various aspects of bio-fuels development in India.
Market Players & Competition • Alfa Laval
• Tree Oils India Ltd.
• Praj Industries
6.3.9 Singapore
Market Size & Growth Singapore is an island state, with only 6 million inhabitants, with little or no land available to grow crops for biofuel. However, it plans to act as a refinery hub for Asia by refining palm oil and jatropha from neighbouring countries such as Indoniesia and Malaysia for export across the
Asia Pacific Clean Tech Handbook 185 of 348 26-Apr-10 region and to Europe. With the Neste Oil production facility to open in 2010, this will take Singapore’s biofuel production capacity to over 1 million tones per year.
Drivers & Constraints Over the past few years, the focus in Singapore has been to kick-start biodiesel production for export. The country aims to produce higher quality biofuels and use alternative non-food feedstock, such as palm oil and jatropha.
Singapore is close to countries that provide the source of raw materials, thus simplifying the process of obtaining feedstock. In addition, the well-connected global shipping routes would facilitate export of the processed biofuels to the major European markets. Companies would also be able to benefit from the many free trade agreements Singapore has signed with our foreign partners.
Market Players & Competition • Neste Oil
• Continental BioEnergy
• Peter Cremer
• JOil (S) Pte. Ltd
• Golden Agri-Resources Ltd
• Wilmar International
Asia Pacific Clean Tech Handbook 186 of 348 26-Apr-10 processing, consumer products, plantation and palm oil mills, and others. The merchandising and processing segment includes merchandising of palm oil and laurics-related products. The consumer products segment bottled oil business in the People’s Republic of China, Vietnam and Indonesia. The plantation and palm oil mills segment is engaged in oil palm cultivation and milling. The other segment includes the business of manufacturing and distribution of fertiliser products and ship-catering services.
6.3.10 Indonesia
Market Size & Growth Currently, there is only one producer which still actively produces biofuel, but the production is well below plant capacity. The installed capacity is approximately 1.5 MMT/year, but reportedly is operating at approximately 7,000 MT/month.
Biodiesel from Palm Oil was 20,750 MT in 2009 and produced 27,000MT of bioethanol from molasses. A total of 70,000MT of biodiesel was exported in 2009.
Drivers and Constraints
Biodiesel Blending Mandates Sector Jan 2009 Jan 2010 Jan 2015 Jan 2020 Jan 2025
Transportation (Public) 1% 2.5% 5% 10% 20%
Transportation (Private) 1% 3% 7% 10% 20%
Commercial & Industries 2.5% 5% 10% 15% 20%
Power plants 0.25% 1% 10% 15% 20%
Source: Regulation No. 32/2008 of Ministry of Energy and Mineral Resources
Bioethanol Blending Mandates Sector Jan 2009 Jan 2010 Jan 2015 Jan 2020 Jan 2025
Transportation (Public) 1% 3% 5% 10% 15%
Transportation (Private) 5% 7% 10% 12% 15%
Commercial & Industries 5% 7% 10% 12% 15%
Power plants
Source: Regulation No. 32/2008 of Ministry of Energy and Mineral Resources
The use of biofuel in power plants as of December 2008 has reached 0.1%. Mandated levels within the Ministerial Decree are 0.25% in 2009; 1% by January 2010; 10% by January 2015; 15% by January 2020; and 20% by January 2025.
This would equate to roughly 4 to 4.5 million MT per year by 2025, from a current consumption of around 27,000 MT in 2009. This is unlikely to be achieved, unless there are incentives for producers to make a profit in producing biofuels.
Asia Pacific Clean Tech Handbook 187 of 348 26-Apr-10 Estimates on Biofuel Requirements Sector Usage (KL) 2010 2015 2020 2025
Industry 5,203,479 520,348 605,166 780,522
Electricity 3,309,124 330,912 496,369 661,825
Households 5,043,051
Transportation 20,788,075 1,039,404 2,078,808 3,118,211
Total (KL) 786,000 1,890,664 3,180,343 4,560,558
Total (MT) 691,682 1,663,790 2,733,108 3,919,250
Source: Estimates
In response, the Indonesian government is planning to set aside USD 150m as subsidies for biofuels in 2010, which it hopes will raise production levels. The ministry of energy said the subsidies are necessary, as crude oil prices are rising, but production is not enough when biofuels becomes mandatory. The government plans to make it mandatory for a 1% bioethanol blend and up to a 5% biodiesel blends from 2010. It estimates that the country would need about 214m litres and 562m of biodiesel when the targets kick in – 786,000KL.
The subsidies will be given to state oil and gas company PT Pertamina, the sole distributor of subsidised fuels, via its pump stations, to help the company to purchase biofuels from the producers. The government said that it will wait until it has finalised a regulation that sets out the rules on the categories of fuels to be subsidised, before agreeing to the subsidy levels.
Market Players & Competition • Puri Usaha Kencana
• China National Offshore Oil Corporation (CNOOC) signed a Memorandum of Understanding with the Indonesian government under which it intends to invest $5.5 billion in the development of the biofuel sector in Indonesia, announcing the establishment of 3 biodiesel processing plants in Kalimantan
• Bronzeoak plans to invest US$270 million to produce ethanol from sweet sorghum. Bronzeoak will cooperate with the Satria Group to build a factory and plantation in the regency of Belu and Central Timor in East Nusatenggara
• The Sampoerna Group plans to construct an ethanol plant in Wonogiri, Central Java.
Besides direct foreign investments, Indonesian (state-owned) Banks are to disburse 25 trillion rupiah (US$2.7 billion) in loans to finance local farmers that help the biofuel projects.
The Bandung Institute of Technology (ITB), Bogor Institute of Agriculture (IPB), the Research and Development Division of the Ministry of Energy and Mineral Resources are
Asia Pacific Clean Tech Handbook 188 of 348 26-Apr-10 amongst the scientific institutions that signed the Memoranda of Understanding to support biofuels projects in Indonesia.
6.3.11 Malaysia
Market Size & Growth Malaysia, with its large and growing palm oil industry, has the potential to play a major role in the world biofuel market. Malaysia is currently the world’s number two producer, after Indonesia and remains the top exporter of palm oil.
Ethanol Ethanol production is commercially insignificant in Malaysia. There is an opportunity for ethanol production from oil palm biomass but the technology is yet to be commercialized. Ethanol consumption is unlikely as retail gasoline prices are subsidized.
Biodiesel According to the Malaysian Palm Oil Board’s (MPOB), there are about 12 Bio-diesel plants, with a combined capacity is about 1.5 million tons. In 2008, bio-diesel output increased by only 5% due to high prices for feedstock. Post expects a 30% increase in 2009 as companies are cranking up their machines when the margins started to appear during the latter half of 2008.
Bio‐diesel plants in Malaysia Company Location Capacity (MT) Carotino Sdn.Bhd Pasir Gudang, Johor Malaysiavegetable Oil Refinery Sdn. Pasir Gudang, Johor Bhd. PGEO Bioproducts Sdn. Bhd. Pasir Gudang, Johor Vance Bioenergy Sdn. Bhd. Pasir Gudang, Johor Mission Biotechnologies Sdn. Bhd. Petaling Jaya, Selangor Carotech Bio-Fuel Sdn. Bhd. Ipoh, Perak Lereno Sdn. Bhd. Setiawan, Perak Golden Hope Biodiesel Sdn. Bhd.- Carey Island Pulau Carey, Selangor Golden Hope Biodiesel Sdn. Bhd.- Panglima Garang Teluk Panglima 390,000 Garang, Selangor Zoop Sdn. Bhd. Shah Alam, Selangor
Global Bio-Diesel Sdn. Bhd. Lahad Datu, Sabah SPC Bio-diesel Sdn. Bhd. Lahad Datu, Sabah Total 1,500,000 Source: USDA
Another four plants with a combined capacity of 190,000 tons was expected to commence commercial production by the end of 2009.
Asia Pacific Clean Tech Handbook 189 of 348 26-Apr-10 Drivers & Constraints Malaysia is one of the leading producers of Palm Oil, which is a main source of biodiesel for the European markets. The use of Palm Oil has been very contentious, with bans threatened on the import of biodiesel from Malaysian and Indonesia, due to the impact on the rainforest.
The Biofuel Industry Act passed in 2007 is the main driver for the development of the biofuel domestic industry.
Market Players & Competition • Golden Hope Biodiesel
6.3.12 Thailand
Market Size & Growth The Thai Government has licensed 45 manufacturing companies to produce ethanol, with a combined production capacity of around 12 million liters/day. Of this, 8.4 million liters are cassava-based ethanol from 24 plants and the balance comes from molasses/sugar-based ethanol (2.2 million liters/day) from 12 plants and tapioca/molasses-based ethanol (1.4 million liters/day) from 9 plants.
Summary of Ethanol Production in Thailand in 2008 Feedstock Number of ML/day Number of ML/day % Utilization Plants Plants Online
Cassava 24 8.4 0%
Sugar Molasses 12 2.2 10 1.45 66%
Tapioca Molasses 9 1.4 1 0.15 11%
Total 45 12.0 11 1.6 13.3%
Source: USDA, Estimates
Projected Growth in Demand for Biofuels in Thailand Biofuel 2008 (KL/year) 2010/11 (KL/year)
Ethanol 90,000 450,000
Biodiesel 31,000 492,000
Total 121,000 942,000
Total MT 104,000 810,000
Source: USDA, Estimates
Asia Pacific Clean Tech Handbook 190 of 348 26-Apr-10 However, only 11 plants had come online in 2008, with a production capacity of around 1.6 million liters/day, with only a total utilization of around 13%. Reduced capacity was mainly due to high prices of feedstock.
Summary of Ethanol Production Capacity in Thailand Company Location Feedstock Capacity Actual (L/day) Production Ponwilai Ayudhaya Molasses 25,000 -
Thai Alcohol Nakornprathom Molasses 200,000 104,381
Thai Agro Supanburi Molasses 150,000 109,842 Thai Nguan Ethanol Khonkean Tapioca 130,000 -
Khonkean Alcohol Khonkean Cane/Molasses 150,000 129,551
Thai Sugar Ethanol Kanchanaburi Cane/Molasses 100,000 102,520
Petro Green Chaiyapoom Cane/Molasses 200,000 162,757
K.I. Ethanol Nakornratchasima Cane/Molasses 100,000 89,029
Ekarat Pattana Nakornsawan Molasses 200,000 -
Thai Ruangruong Energy Saraburi Cane/Molasses 120,000 28,280
Petro Green Kalasin Cane/Molasses 200,000 160,653
E.C. Business Partners Rayong Tapioca 150,000 n/a
Fha-kwantip Prajinburi Tapioca 60,000 n/a
Ratchaburi Ethanol Ratchaburi Tapioca/Molasses 150,000 Q3-2008
E.S. Power Srakaew Cane/Molasses 150,000 Q3-2008
Srima Inter Products Chachoengsao Cane/Molasses 150,000 Q4-2008
Supthip Lopburi Tapioca 200,000 Q4-2008
P.S.C. Starch Products Chonburi Tapioca 150,000 Q2-2008
T.P.K Ethanol Nakornratchasima Tapioca 340,000 Q3-2008
Impress Technology Chachoensao Tapioca 200,000 Q4-2009
Boonanek Nakornratchasima Tapioca 350,000 Q2-2009
Double A Ethanol Srakaew Tapioca 500,000 Q1-2009
Total 3,975,000 Source: USDA
Asia Pacific Clean Tech Handbook 191 of 348 26-Apr-10 Biodiesel At present, nine B100 biodiesel plants are operating at half of their production capacity of 2.19 liters/day. Although the current government policy on mandatory B2 production warrants sale quantities and prices to manufacturers, they are still concerned that CPO production could be a bottleneck for expanding.
Summary of Biodiesel Production Capacity in Thailand Plant Production Capacity (liters/day)
BangChak Petroleum Plc. 50,000
Bio Energy Plus Co.,Ltd. 100,000
Sun Tech Palm Oil Co.,Ltd. 200,000 Pathum Vegetable Oil Co.,Ltd. 300,000
Bangkok Alternative Energy Co.,Ltd. 200,000
Green Power Corporation Co.,Ltd. 200,000
A I Energy Co.,Ltd. 250,000 WeeraSuwan Co.,Ltd. 200,000
Thai Oleo 650,000
Total 2,185,000 Source: USDA
Drivers & Constraints
Ethanol As of January 1, 2008, the Thai Government launched E20 gasoline following a surge in E10 gasoline sales in 2007. According to the Department of Alternative Energy Development and Efficiency, Ministry of Energy, E20 gasoline consumption is estimated at 0.25 million liters/day in 2008, and is forecast to increase to 1.23 million liters/day (450 million liters per year) or 5% of total gasoline consumption by 2011. Targets are expected to increase to 9 million liters/day by 2022.
Biodiesel As of February 1, 2008 the Thai Government began to enforce compulsory production of B2 biodiesel throughout the country. The requirement has made a noticeable impact on demand for domestic palm oil, the only raw material for B100 biodiesel production at the moment. It is estimated that demand for crude palm oil and stearin (palm oil by-product) will be 492 million liters per year by 2010, as compared to only 31 million liters in 2006. Targets are expected to increase to 1.2 million liters/day by 2022.
Asia Pacific Clean Tech Handbook 192 of 348 26-Apr-10 Market Players & Competition
Ethanol • Thai Alcohol Co Ltd
• Double Ethanol Co Ltd
• Bioethanol (Thailand) Co.,Ltd invested 1.3 billion Baht in producing ethanol with a capacity of 72 million liters/year and organic fertilizers 21,600 tons/year at a plant located in Chonburi.
• Thai Agro Energy Public Co., Ltd
• Power Agricutural Industry Co., Ltd
• Boonanek Co.,Ltd.
Biodiesel • Lam Soon Public Company Limited
Market Size & Growth
Ethanol To date, there are only 2 ethanol production facilities in commercial operation. Both facilities have a combined annual production capacity of about 39 million liters. At the current mandated 5% ethanol blend, however, overall demand for bio-ethanol in 2009 is estimated at around 208 million liters. The Philippines has been importing bio-ethanol to meet the mandated bio-ethanol blend of 5%. However, as part of the Biofuel Act, companies can only import ethanol for four years (through to 2013) and will need to source ethanol from domestic supplies. After 2013, the
Asia Pacific Clean Tech Handbook 193 of 348 26-Apr-10 mandated percentage blend will be reduced to that level local production can only supply. The final blend percentage is to be decided by the National Bio-Fuels Board (NBB). The probability of this happening is high given the inadequate number of bio-ethanol extraction plants currently in operation or under construction.
Biodiesel There are currently 12 bio-diesel plants capable of producing 395 million liters annually. At a 2% blend, an estimated 140 million liters of CME is required annually. The excess CME production capacity is indicative of the industry’s potential as a CME exporter although this scenario will largely be determined by how oil prices behave relative to prices of CNO. The surplus capacity is also likely the basis for the Philippine Department of Energy (DOE)’s consideration of increasing the required bio-diesel blend to 3% from the present 2% by end of 2009. Domestic coconut oil refiners, on the other hand, are discussing with the Philippine government the possibility of promoting an even higher blend of 5% bio-diesel blend.
Market Drivers & Constraints
Ethanol From February 2009, a 5% ethanol mandate will be implemented in the Philippines. At the moment, oil firms are importing ethanol to help meet the mandate, as there is no domestic operating plant. Chevron plans to buy ethanol from domestic sources when the first production plants start operating, starting from mid-2009
Most of the USD 20m will go towards making its terminals compatible with E10 ethanol. It is seeking to increase the number of stations that carry its E10 brand to 35 from 22 now. It hopes to increase this further to 400 retail stations by February. The company plans to invest more once the mandated blending ratio under the Biofuels Act of 2006 becomes higher.
Ethanol feedstock currently being investigated are sugarcane, sweet sorghum and cassava to increase domestic production.
Biodiesel The Philippine Department of Energy (DOE) increased the biodiesel blend to 3% in February 2009, from the 2% originally planned. The DOE stated that the 13 biodiesel manufacturers could produce up to 326m liters, which is enough to cover the 3% blend.
Coco-methyl ester (CME) derived from coconut oil (CNO) is the feedstock currently used for Philippine bio-diesel production the country being the largest CNO producer in the world. The government has also announced plans to launch massive propagation and cultivation of jatropha covering around 2 million hectares of unproductive and idle public and private lands nationwide. This effort will produce about 5,600 million liters of bio-fuel in the next 10 to 12 years.
Market Players & Competition • National Development Co
Asia Pacific Clean Tech Handbook 194 of 348 26-Apr-10 6.3.14 Australia
Market Size & Growth According to ABARE, total consumption of petroleum products for 2009 is estimated at 58,119 ML (million liters) and is projected to increase steadily to 61,463 ML in 2014. Automotive gasoline makes up about 55% of Australia’s transport fuel demand while diesel represents about 45%.
Biofuels production capacity for 2009 is about 255 ML (split roughly into about 180 ML of ethanol and 75 ML of biodiesel) and is likely to increase to 365 ML in 2010.
Ethanol Production Facilities Production facility/location Principle feedstocks
Manildra Group - Nowra NSW Waste wheat starch
CSR Distilleries – Sarina Qld Molasses
Dalby Biorefinery Grain
Source: ABARE
Biodiesel Production Facilities Production facility/location Principle feedstocks
Biodiesel Ind - Rutherford NSW Tallow and used cooking oil
Biodiesel Producers Barnawatha Tallow and used cooking oil
Smorgan Fuels – Laverton Vic Tallow and used cooking oil
Eco-tech Biodiesel – Narangba Qld Tallow and used cooking oil
Source: Post Estimate
Drivers & Constraints While there is no national biofuel policy, the government has a broad range of policy instruments that affect the production of biofuels. These instruments include a production target, fuel taxes (excise), fuel quality standards, grants and labeling.
Both ethanol and biodiesel are currently free from excise taxes, currently applied to diesel and petrol. This exemption is made in the form of “production grants” which effectively provide a subsidy at the same rate per liter of fuel as the excise that would be levied – A$0.381 per liter. This scheme is due to commence scaling down in 2011/12 when the effective assistance rate will fall to A$0.234 and will continue to fall through 2015/16.
At a state level, New South Wales increased its volumetric mandatory inclusion policy for ethanol to legislation. Under this legislation, by 2011, the inclusion level of ethanol in petrol will be 10%. This will equate to roughly 120 ML of ethanol per year.
Asia Pacific Clean Tech Handbook 195 of 348 26-Apr-10 The state of Queensland has committed to a mandate of volumetric inclusion of 5% by 2011. Victoria and Western Australia have a biofuel “target” of 5% by 2010. The states of Tasmania, South Australia and the Northern Territory remain uncommitted.
Market Players & Competition
Ethanol • Manildra Group
• CSR Ethanol
• Dalby Biorefinery
Biodiesel • Smorgen Fuels
• Eco-tech Biodiesel
6.3.15 New Zealand
Market Size & Growth Under the Biofuel Bill, a 2.5% obligation by 2010 would require 158 ML of biofuel to be produced.
Drivers & Constraints The Biofuels Bill required oil companies to sell a minimum percentage of biofuels from July 1, 2008. The mandatory requirement was set to start at 0.53% of energy rising to 3.4% in 2012. However, Parliament's Environment Select Committee, which reported back on the bill on June 23, 2008, recommended the obligation be cut to 2.5% by 2012
Market Players & Competition • Fonterra
• Solid Energy
Asia Pacific Clean Tech Handbook 196 of 348 26-Apr-10 6.3.16 Summary of Companies in Biofuel Sector Code Compay Name Market Cap PE ratio Country Sector (M Dollars)
Anhui BBCA 000930.SZ Biochemical Co Ltd $1,367.7 65.3 China Health & Personal Care
China Clean Energy Building Materials & CCGY.OB Inc $21.7 N/A China Components
Gushan Environmental Energy GU.N Ltd $97.6 N/A China Ethanol
China Biodiesel International Hldg Co CBI.L Ltd $6.6 26.7 China Chemicals
ALFA.BO Alfa Laval India Ltd $526.3 19.4 India Machinery & Engineering
Wilmar International Business & Public WLIL.SI Ltd $30,390.8 16.0 Singapore Services
Golden Agri- Misc. Materials & GAGR.SI Resources Ltd $4,882.0 7.7 Singapore Commodities
Lam Soon Thailand Food & Household LST.BK Public Co Ltd $89.3 9.6 Thailand Products
CSR.AX CSR Ltd $2,328.6 N/A Australia Industrial Components
Unlisted Solid Energy N/A N/A New Zealand Biodiesel
Biomass Energy Unlisted Corporation N/A N/A Japan Ethanol
Nippon Shokubai Co. Unlisted Ltd N/A N/A Japan Biodiesel
Unlisted Next Oil Co. Ltd. N/A N/A South Korea Biodiesel
Unlisted Enertech Inc. N/A N/A South Korea Biodiesel
Unlisted Continental BioEnergy N/A N/A Singapore Biodiesel
Unlisted Peter Cremer N/A N/A Singapore Biodiesel
Unlisted JOil (S) Pte. Ltd N/A N/A Singapore Biodiesel
Unlisted Puri Usaha Kencana N/A N/A Indonesia Biodiesel
Golden Hope Unlisted Biodiesel N/A N/A Malaysia Biodiesel
National Development Unlisted Co N/A N/A Philippines Biodiesel
Unlisted Thai Alcohol N/A N/A Thailand Ethanol
Thai Agro Energy Unlisted Public Co N/A N/A Thailand Ethanol Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 197 of 348 26-Apr-10 6.4 Biomass 6.4.1 Background Biomass combustion consists of burning material produce from plant material. At present, combustion of biomass falls into the main categories:
• Co-firing in modern coal power plants with efficiencies up to 45% is the most cost-effective biomass use for power generation. Due to feedstock availability issues, dedicated biomass plants for combined heat & power (CHP), are typically of smaller size and lower electrical efficiency compared to coal plants (30%-34% using dry biomass, and around 22% for municipal solid waste). In cogeneration mode the total efficiency may reach 85%-90%.
• Biomass integrated gasification in gas-turbine plants (BIG/GT) is not yet commercial, but integrated gasification combined cycles (IGCC) using black-liquor (a by-product from the pulp & paper industry) are already in use.
• Anaerobic digestion to produce biogas is expanding in small, off-grid applications.
• Bio-refineries may open the door to combined, cost-effective production of bio-chemicals, electricity and biofuels.
6.4.2 Targets & Incentives Biomass already makes up a part of the energy mix in countries like India. Biomass offer a consistent supply of fuel that is cost efficient and can complement the existing fuel mix, with no need for retro fitting.
China and India, Indonesia already produce a large amount of energy from biomass. Thailand has introduced its 15 year plan, with the majority of it focused on biomass.
Asia Pacific Clean Tech Handbook 198 of 348 26-Apr-10
Asia Pacific Biomass Market (MW capacity) Country 2009 2010E 2015E 2020E
China 5,500 30,000
Japan 1,630 1,630 1,750 2,530
S Korea 12 200
Taiwan 380
India 1,700 3,920
Indonesia 302 810
Thailand 214 3,700
Australia 446 1,845
NZ 1,644 1,650 1,650 1,700
Source: EIA, Government Publications, Estimates
Cost of Generation Because of widely varying feedstocks and conversion processes, it is difficult to identify typical costs for biomass energy. The most economical approach is to use local biomass to avoid costly, energy-consuming transportation. Pelletisation can facilitate transportation but not all biomass readily forms pellets. The incremental investment cost of biomass/coal co-fired power plants
Asia Pacific Clean Tech Handbook 199 of 348 26-Apr-10 range from $50 to $250/kW. Where feedstock is available at little or no cost, co-firing can reduce the electricity generation cost to as low as $20/MWh. If biomass is available at costs between $3.0-$3.5/GJ, then the electricity generation cost is higher than for typical coal-based electricity ($30-$50/MWh). This is however the most competitive near-term option for using biomass in power generation. The cost of electricity from dedicated solid biomass plants depends on technology, feedstock quality and cost, regional location, and size of the plant. Large-size plants require biomass transportation over long distances.
Small size means higher investment cost per kW and lower electrical efficiency relative to coal plants. The capital cost of power plants with biomass gasification in the United States is about $2000-$3000/kW and generation cost is in the order of $90/MWh. Such plants may be cost- effective in CHP mode, if connected to district heating schemes. The cost of biomass combustion steam cycle and CHP plants can be lower, with $1000/kW as the cost target.
Assuming a delivered biomass price of $3/GJ, the generation costs from biomass gasification plants, even at higher efficiencies, are expected to be some $100-$130/MWh, more than twice the cost of fossil-fuel power plants. These costs may be significantly reduced by technology learning and then represent a low-cost option for renewable electricity.
CDM Projects There are 593 projects in biomass in Asia, making it the third largest CDM sector after hydro and wind. India is the largest generator with 386 projects, followed by China (82) and then Malaysia (45) and Indonesia (23). Most of these projects are generated from agricultural residue.
Asia Pacific Clean Tech Handbook 200 of 348 26-Apr-10 6.4.3 Biomass Supply Chain Figure 6.12 – Biomass Process
Feedstock Process Product
Solid Combustion Steam Heat Agricultural Co-firing, CHP Gasification CO+H2 DME
Animal Manure IGCC, FT
Forestry Waste Pyrolysis Bio-oil
Oil Industry Waste Extraction Esterifcation Biodiesel
Municipal Waste
Sugar Fermentation Distillation Ethanol Sewage Sludge Bio refinery
Crops Shift Reformer
Lignocell Wet Anaerobic Digestion Bio gas Hydrogen
Anaerobic Digestion
Cofiring Biomass co-firing in modern, largescale coal power plants is efficient, cost-effective and requires moderate additional investment. In general, combustion efficiency of biomass can be 10% points lower than for coal at the same installation, but co-firing efficiency in large-scale coal plants (35%- 45%) is higher than the efficiency of biomass-dedicated plants. In the case of co-combustion of up to 5%-10% of biomass (in energy terms) only minor changes in the handling equipment are needed and the boiler is not noticeably derated. For biomass exceeding 10% or if biomass and coal are burned separately, then changes in mills, burners and dryers are needed. In addition, coal ashes that are used to produce construction materials should not be contaminated with tar and alkali metals-rich ash from biomass. Many co-firing technology options have been demonstrated in several countries (Northern Europe, United States and Australia) in some 150 installations using different feedstock (wood biomass, residues and crops). Using low-cost local biomass, the incremental investment may have a short payback period (2 years), but low-quality biomass such as herbaceous crops and wet wood may produce tar and cause slagging and fouling that affects plant reliability and raises costs.
Combustion in dedicated power and CHP plants Biomass can be burned to produce electricity and CHP via a steam turbine in dedicated power plants. The typical size of these plants is ten times smaller (from 1 to100 MW) than coal-fired
Asia Pacific Clean Tech Handbook 201 of 348 26-Apr-10 plants because of the scarce availability of local feedstock and the high transportation cost. A few large-scale such plants are in operation. The small size roughly doubles the investment cost per kW and results in lower electrical efficiency compared to coal plants. Plant efficiency is around 30% depending on plant size. This technology is used to dispose of large amounts of residues and wastes (e.g bagasse). Using high-quality wood chips in modern CHP plants with maximum steam temperature of 540°C, electrical efficiency can reach 33%-34% (LHV), and up to 40% if operated in electricity-only mode. Fossil energy consumed for bio-power production using forestry and agriculture products can be as low as 2%-5% of the final energy produced. Based on life- cycle assessment, net carbon emissions per unit of electricity are less than 10% of the emissions from fossil fuel-based electricity.
When using Municipal Solid Waste (MSW), corrosion problems limit the steam temperature and reduce electrical efficiency to around 22%. New CHP plant designs using MSW are expected to reach 28%-30% electrical efficiency, and above 85%-90% overall efficiency in CHP mode if good matching is achieved between heat production and demand. Incineration of MSW is a mature technology. Emissions of pollutants and dioxin can be effectively controlled, but in many countries, incinerators face public acceptance issues and are seen as competing with waste recycling.
MSW also offers net reduction of CO2 emissions. MSW can generate some 600 kWh of electricity per tonne and emit net 220-440 kg CO2 from the combustion of the fossil-derived materials (20-
40% of MSW). The CO2 emitted to generate 600 kWh from coal would be some 590 kg. Methane emissions from MSW in modern landfills would be between 50-100 kg/t (equivalent to 1150-2300 kg CO2), 50% of which is collected and 50% is released in the atmosphere. Thus, electricity production from MSW offers a net emission saving between 725 and 1520 kg CO2/t MSW. Saving is even higher for CHP.
Gasification Biomass conversion into biogas can be either from fast thermo-chemical processes (e.g., pyrolysis) which can produce biogas and other fuels, with only 2%-4% of ash, or from slow anaerobic fermentation - which converts only a fraction (50%-60%) of feedstock but produces soil conditioners as a byproduct. The biogas can be used in combustion engines (10 kW to 10 MW) with efficiency of some 30%-35%; in gas turbines at higher efficiencies or in highly-efficient combined cycles. Biomass integrated gasification gas turbines (BIG/GT) are not yet in commercial use, but their economics is expected to improve. The first integrated gasification combined cycle (IGCC) running on 100% biomass (straw) has been successfully operated in Sweden. Technical issues appear to have been overcome. IGCC plants are already economically competitive in CHP mode using black-liquor from the pulp and paper industry as a feedstock. Other developments have brought Stirling engines and Organic Rankine Cycles (ORC) closer to the market whereas integrated gasification fuel cell plants (IGFC) still need significantly more R&D.
Anaerobic digestion, landfill gas In the absence of air, organic matter such as animal manures, organic wastes and green energy crops can be converted by bacteria-induced fermentation into biogas (a 40%-75% methane-rich gas with CO2 and a small amount of hydrogen sulphide and ammonia). Anaerobic digestion is also the basic process for landfill gas production from municipal green waste. It has significant
Asia Pacific Clean Tech Handbook 202 of 348 26-Apr-10 potential, but it is characterised by relatively small plant size. Anaerobic digestion is increasingly used in small-size, rural and off-grid applications at the domestic and farm-scale. The rising cost of waste disposal may improve its economic attractiveness. In modern landfills, methane production ranges between 50 and 100 kg per tonne of MSW. In general, some 50% of such gas can be recovered and used for power and heat generation. After purification and upgrading, biogas can be used in heat plants, stationary engines, fed into the natural gas grid, or used as a transport fuel (compressed natural gas). Large-size plants using MSW, agricultural wastes and industrial organic wastes (large-scale co-digestion) need some 8000-9000 tonne MSW per year per MW of installed capacity. Some 200 such plants are in operation or under construction world wide using more than 5 million tones of MSW.
Biorefineries and hydrogen Bio-refineries can theoretically produce a variety of products such as biopolymers, liquid bio-fuels, biogas, electricity or hydrogen. Using proper feedstock and exploiting production synergies, bio- refineries could gain economic appeal. The pulp and paper industry as well as the food industry have processing plants already produce several products for different markets but energy carriers are not usually one of them. Hydrogen can be obtained from biomass in a number of ways, the most direct being reforming of bio-methane and bio-ethanol. Processes are well known but their efficiency and cost need to be improved.
Potential Sources of Biomass Feedstock Category of biomass residue Main sources / biomass residues Agriculture All residues remaining in-situ from agriculture production, including straw from cereal production; animal manures; stalks from cotton, maize etc; stems & leaves from sugar beet, tobacco etc; prunings from vines, fruit trees etc. All residues produced as by-products from processing agriculture crops such as cotton processing; food canning; olive oil processing; meat processing; wine making Forestry All non-merchantable wood - small diameter roundwood, branches/brash, tops – left in-situ by thinning and harvesting operations. Includes short rotation forestry. All non-treated residues – chips, bark etc – from primary and secondary processing of wood: saw mills; furniture making; pulp and paper mills; fiber board mills Energy Crops Potential annual or perennial dedicated energy crops. Trees grown on short rotation coppice (willow, poplar etc); grasses etc (giant reed, switchgrass, miscanthus, cardoon, Spanish thistle artichoke). Waste (Covered in Section 6.12) Untreated wood residues excluding those from wood processing industry (eg. wood pallets and packaging, demolition wood). The organic fraction of waste from households, commerce, industry. Sewage (Covered in Section Potential biogas production from sewage treatment 6.11)
Asia Pacific Clean Tech Handbook 203 of 348 26-Apr-10 6.4.4 Research & Development Japan led the number of patent filings in the biomass and Waste to Energy sectors from 1990 to 2000. However, recent analysis shows that China has increased the numbers of patents it has filed in this sector.
Figure 6.13 - Biomass R&D Patent Filings
Bioenergy (1001 patents) Energy from Waste(2336 patents)
Other Other US 2% 9% 1% US EU 16% 9%
Japan EU 52% Japan 30% 81%
Source: AIST
6.4.5 China
Market Size & Growth The size of the biomass market in China is around 480 million tons of oil equivalent (TOE), of which half (240 million tons of oil equivalent) is estimated to be from agriculture waste36 . This equates to roughly 800 million tons of agricultural residues a year. 58% of this residue is discarded or burned in open fields, while less than 1% is used in power generation37.
36 Research and Development on Biomass Energy in China, Wu Chuangzhi, Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences
37 www.chinaeconomicreview.com
Asia Pacific Clean Tech Handbook 204 of 348 26-Apr-10 China has launched 19 biomass plants, with a further 10 planned in five leading grain-producing provinces to cut carbon dioxide emissions in electricity generation amid growing global concerns over greenhouse gas and climate change. The biomass plants are operatied by National Bio Energy (NBE), a Joint Venture between the State Grid and DP CleanTech.
China's installed capacity of bio-energy electricity is forecast to reach 5,500 MW by 2010, according to the country's 11th Five-Year Plan 2006 to 2010. Drivers & Constraints
The Chinese "Renewable Energy Act" of 2006 represented a significant market driver that led to the construction of over 100 biomass electric power generation plants on a scale of 25MW or above. China has renewed its biomass target to 30GW by 2020. Constraints are access to the grid and supply of secure and reliable feedstock, with competition from other renewable energy types, such as cellulosic biofuel.
Market Players & Competition • National Bio Energy Limited
• Balama Nviro Limited
• Wuhan ecoWise Energy Co., Ltd
• China Energy Conservation Investment Corp
6.4.6 Japan
Market Size & Growth
Incineration
Japan incinerates over 70% of its Municipal Solid Waste (MSW). It processes around 51 million tonnes per year through 1400 incinerators, generating around 1,630 MW in electricity. In addition, it incinerates processes around 412 million tonnes, with a 75% incineration rate. For more detail on process, see Section 6.12.
Asia Pacific Clean Tech Handbook 205 of 348 26-Apr-10 Agricultural Waste
The country produces about 24 million KL of biomass waste annually and about 5.5 million KL of unused biomass, including rice and wheat straw. The target for 2010 is 2.6 million KL in 201038. With the target of 80% of waste biomass and 25% of unused biomass, it is expected that total capacity will increase to around 20.5 million KL (17.5 million tones).
Drivers & Constraints
The ‘Biomass Nippon Strategy’ implemented in 2002 sets out the objective of using 80% of waste biomass and 25% of unused biomass for productive purposes by 2025.
As part of the Strategy, the government plans to launch 300 biomass towns by 201039. Cellulosic biomass accounts for almost two thirds of biomass in Japan.
Market Players & Competition • Energy Advance
• Chugai Ro Co. <1964.T> has developed a forest biomass gasification pilot plant in Yamaguchi Prefecture, western Japan. The system also reuses combustion residue and waste heat from the gasification process, which makes it possible to get three times more energy from biomass than existing methods.
• Nishinippon Environmental Energy Co
• First Energy Service Company Ltd <9514.T> operates a 10MW biomass power plant, which started operation in 2006. Wood fuel is secured from Iimori Mokuzai Co, a logging company, and annual consumption by the CFB boiler is expected to be about 90,000t.
6.4.7 South Korea
Market Size & Growth The total amount of new and renewable energy generated in Korea is around 5.5 million tons of oil equivalent (TOE), of which waste energy including waste gas accounted for about 4 million TOE.
38 METI, 2007
39 Biomass Nippon Strategy, MAFF, Japan
Asia Pacific Clean Tech Handbook 206 of 348 26-Apr-10 The ministry has gradually increased the government subsidies for waste to energy facility establishment and provided about 33 billion won of national budget for establishment of such facilities in local governments. It is expected the ministry will offer more government subsidies to increase the waste to energy distribution rate by 2010. As the results of its effort to expand power generation facilities from waste, it is scheduled to complete the construction work of an RDF manufacturing facility capable of producing 200 tons of RDF a year in the metropolitan areas in 2009, a biogasification facility capable of producing 98 tons of biogas per day in Dongdaemun-gu in Seoul, a sewage sludge desiccation facility capable of processing 450 tons per day in Suwon, and landfill gas facilities in Gumi and Masan. In addition, RDF manufacturing facilities and exclusive RDF boilers in 12 cities including Naju, and biogasification facilities and sewage sludge desiccation facilities in 8 landfill sites in the metropolitan areas are under construction or in the planning stage.
Korea has only one Refuse Driven Fuel (RDF) manufacturing facility (in Wonju in Gangwon province) and 34 RDF manufacturing facilities led by private sector companies. Although Biogasfication using food waste, sewage sludge and livestock manure has been partly processed in the livestock wastewater disposal facility in Paju Gyeonggi province, the Saenggok landfill site in Busan, and sewage disposal facilities in Dongrae-gu in Busan and Nam-gu in Ulsan.
Drivers & Constraints The ministry of environment announced "Waste Resources and Biomass Energy Utilization Initiatives" in 2008 and was due to release its roadmap in 2009. As of 2007, the amounts of combustible wastes and organic wastes accounted for about 3.84 million tons and 7.85 million tons per year, respectively. However, only 1.5% (58,000 tons/year) of combustible waste, and 2% (160,000 tons/year) of organic waste were utilized as energy resources. In an effort to facilitate waste to energy policy, the ministry aims to achieve energy utilization of combustible waste (by 47% or 1.82 million tons/year) and of organic waste (by 26% or 2.04 million tons/year) by 2013. In addition, it plans to increase energy collecting rates-77% of residual thermal from middle and large-scale incinerators and 91% of landfill gas from waste landfill sites- by 2013.
Market Players & Competition • Kumho Petrochemical <011780.KS> provides three categorized products: synthetic rubber, synthetic resins and fine chemicals. Synthetic rubber products include styrene butadiene rubber (SBR), thermoplastic elastomer, acryronitrile butadiene, polybutadiene rubber and other products, which are used for the manufacturing of tires, shoes, rubber hoses, belts and industrial rubber products. Kumho has constructed its second cogeneration plant in Yeosu in 2009.
• Aquentium
Asia Pacific Clean Tech Handbook 207 of 348 26-Apr-10 6.4.8 Taiwan
Market Size & Growth From 1991, the Taiwan government set up a long term plan for the construction of WTE plants. 21 WTE plants were to be constructed by the government by 2005. These WTE plants will process an estimated total of 18,615 metric tons of MSW per day (85% of the design capacity of 21,900 metric tons), amounting to about 7.2 million tons per year or 65% of the total MSW generated in 2005. These plants are expected to generate 1.85*106 MWh of electricity per year. The surplus electricity generated will be result in annual revenue of about $47 million.
Drivers & Constraints
Market Players & Competition • Taiwan Cogeneration Corporation <8926.TW> is a specialized cogeneration company, established in 1992 with a goal of assisting the industry by providing cogeneration technology to enhance energy efficiency, to result in lower energy cost, and to upgrade power supply in Taiwan. Taiwan Cogeneration obtained two permits from MOEA to invest in Fong Der Gas- fired Power Plant of Sun Ba Power Corporation and Chang Bin Gas-fired Power Plant of Star Energy Power Corporation.
• Chung Hsin Electric & Machinery Mfg. <1513.TW> is principally engaged in the manufacture and distribution of electrical power equipment, as well as the project contracting of construction works.
• SINO Environmental Services Corp
• Onyx Ta-Ho Environmental Services Co., Ltd
• Taiwan Sugar Corp
Asia Pacific Clean Tech Handbook 208 of 348 26-Apr-10 6.4.9 India
Market Size & Growth Total installed capacity 148,265MW, with a projected growth of an additional 92,000MW over the next 10 years, with the potential power generation for biomass estimated to be 16,000MW.
Under the 11th Plan period, the government aims to add 1,700MW capacity through biomass (500MW) and bagasse (1,200MW) cogeneration in states – Maharashtra, Uttar Pradesh, Tamil Nadu and Karnataka.
Sugar mills in Maharashtra, Uttar Pradesh, Tamil Nadu and Karnataka, Andhra Pradesh, Bihar, Gujarat, Punjab and Haryana has an estimated potential of 5,000MW surplus of power generation through bagasse based cogeneration40
Biomass/Co Generation Projects in India Program Commissioned Projects (MW) Under Implementation (MW) Bagasse Co-generation 109 (1048) 118 (1591) Biomass Power 102 (704) 60 (578) Total 21 (1752) 178 (2169) Source:
Drivers & Constraints Incentives for biomass projects include:
• Accelerated Depreciation 80% in first year (Boiler and Turbine).
• Income Tax Exemption for 10 years (under Section 80 1A).
• Concessional import duty; excise duty exemptions on equipments & components required for initial setting of the project.
• Sales tax exemption in some states.
• IREDA Provide Loan For Biomass Power / Cogeneration Projects.
• Capital subsidy
• Preferential Tariff in 14 States.
Market Players & Competition
There are around 10 domestic manufacturers that can producer gasifiers from a few KW-1 MW and have an annual production capacity and include:
40 Minister of State in the Ministry of New and Renewable Enegry
Asia Pacific Clean Tech Handbook 209 of 348 26-Apr-10 Manufacturers • BHEL
• Thermax
• Walchangnagar
• Texmaco
• Cetnar Vessels
• Triveni Engineering
Asia Pacific Clean Tech Handbook 210 of 348 26-Apr-10 • DLF Energy Systems
Biomass Operator
All Green Energy
6.4.10 Singapore
Market Size & Growth Singapore incinerates 90% of its Municipal Solid Waste through 4 incineration plants and generates roughly 980 kWh of energy, supplying roughly 2% of Singapore’s electricity demand.
MSW incinerator capacities in Singapore Plant Capacity Comment Ulu Pandan 16MW Closed in August 2009 Senoko 56MW Acquired by Keppel Tuas 46MW Tuas South 132MW Total 234MW Source: Waste Management Department, NEA
Drivers & Constraints
‘Waste to Energy’ projects in Singapore are focused on Municipal Solid Waste.
Market Players & Competition • Transcu Group
• ecoWise Holdings Limited < ECOW.SI>, an integrated environmental solutions provider, announces that its joint-venture company, Wuhan ecoWise Energy Co., Ltd (“Wuhan ecoWise”) has recently entered into an equipment procurement and supply contract for clean combustion technology with Belgian clean energy company, Vyncke Energietechniek NV (“Vyncke”), for its 25 MWH biomass co-generation plant in Wuhan Peoples’ Republic of China.
• ECO-IEE
Asia Pacific Clean Tech Handbook 211 of 348 26-Apr-10 processes and environmental technologies. It has a cogeneration plant has a turbine capacity of 0.53 MW and uses wood waste as fuel.
• Bee Joo Industries Pte Ltd
6.4.11 Indonesia
Market Size & Growth Indonesia has a potential of 147 million tonnes of biomass per year. However to date only palm oil biomass project by Bronzeoak has been identified.
Drivers & Constraints
Biomass has a target of 180MW capacity by 2025.
Market Players & Competition
Bronzeoak Indonesia has a number of biomass plants in Indonesia.
6.4.12 Malaysia
Market Size & Growth
No plants have been identified.
Drivers & Constraints
No targets for biomass have been identified, although there is potential for biomass cogeneration from Palm Oil and agricultural waste.
Market Players & Competition
No companies in this sector have been identified.
6.4.13 Thailand
Market Size & Growth
Thailand has the potential to produce large amounts of power from biomass, such as sugar cane (bagasse) and agricultural waste (rice husks). It currently generates around 214MW via the Small Power Producer scheme, but this is expected to grow significantly, in order to meet its 2022 target of 3,700MW.
Drivers & Constraints Thailand has made biomass central to its 15 year plan for renewables and expected to generate 3,700MW by 2022.
Asia Pacific Clean Tech Handbook 212 of 348 26-Apr-10 EGAT announced in 2009 to purchase electric from Small Power Producers (SPP) from waste and biomass, which should increase generation from biomass.
Market Players & Competition • Vichitbhan Group
• Thailand's Biomass Electricity Co., Ltd.
• MPM Technologies
• Clean Energy Development Company Thailand Ltd
• AT Biopower Co Ltd
• Mungcharoen Green Power Co Ltd
• Advance Bio Power Co Ltd
Asia Pacific Clean Tech Handbook 213 of 348 26-Apr-10 Summary of Biomass Projects in Thailand Location Owner Output Status Primary Cofired fuel(s) (MWe) fuel
Bang Mun Nak, Pichit AT Biopower 1 X 22 2005 rice husk Co Ltd MW
Burirum, Buri Ram Advance Bio 1 X 9.5 2007 rice husk Power Co Ltd MW
CGC Plant, Nakhon C Gigantic 1 X 2.76 coconut shell, Ratchasima Carbon Co Ltd MW CHP wood
Roi Et Electricity 1 X 9.8 2006 rice husk Generating MW Public Co Ltd
Surin MGP, Prasart Mungcharoen 1 X 9.9 2007 rice husk Surin Green Power MW Co Ltd
Chiang Mai Provincial 20 lignite RDF Electricity Authority of Thailand
Source: USDA, Websites
6.4.14 Philippines
Market Size & Growth
Demonstration plants have been planned and aim to use the agricultural waste for cogeneration.
Drivers & Constraints
Although no target has been set, Biomass falls under the Philippines Energy Plan (PEP) and will contribute to the 20GW target by 2020.
Market Players & Competition • Phil-Korean Renewable Energy
• Clenergen
Asia Pacific Clean Tech Handbook 214 of 348 26-Apr-10 6.4.15 Australia
Market Size & Growth In Australia less than 5% of energy is generated using biomass fuels. Wood represents 2.4% of Australia’s total primary energy consumption. About three quarters of the heat energy produced from wood is used in the residential sector. The remaining heat energy is used in making wood products, paper and in food industries. About 22% of Australian homes use wood for heating41. In 1997 bagasse represented about 2% of Australia’s total primary energy consumption. The energy produced by burning it is used to power the sugar cane mills and the excess is sold to the local electricity company. The sugar mills in Queensland, NSW and WA had a combined maximum output of about 300 MW in 199742. In 1997 the total capacity of power plants using landfill gas in Australia was about 72MW.
LFG Landfill gas projects are a recent development in Australia, with the number growing to 29 at the beginning of 2004. For more on LFG, see Section 6.12.
Biogas The use of sewage gas for electricity production is also increasing in Australia. In 1997 the installed sewage gas electricity generation capacity was about 7MW, which represented a 59% recovery of methane gas from wastewater treatment plants.This output is expected to treble to 20MW by 2010. For more on Biogas, see Section 6.11.
Biomass Potential in Australia Feedstock MW in 2020 Existing Generation Total in 2020 (GWh) Long term potential (GWh) (GWh)
Agricultural Waste 106 2 791 50,566
Energy Crops 29 0 218 534
Landfill Gas 251 772 1,880 3,420
Sewage 120 57 901 929
Sugar 831 1,200 3,165 7,800
Urban Waste 96 103 721 4,320
Forestry 412 438 2,948 5,060
Total 1,845 2,572 10,624 72,629
Source: Bioenergy Roadmap, Clean Energy Council
41 DPIE, 1997
42 DPIE 1997
Asia Pacific Clean Tech Handbook 215 of 348 26-Apr-10 Drivers & Constraints The Renewable Energy Target (RET) is the main driver for renewable targets in Australia. Estimates from the Clean Energy Council suggest that electricity from biomass can account 4% of Australia’s total by 2020 (11,000MWh per year)43
Market Players & Competition
• EarthPower Technologies
Operators • Stanwell Corporation
• Ergon Energy
• Delta Electricity
43 Bioenergy Roadmap, Clean Energy Council
Asia Pacific Clean Tech Handbook 216 of 348 26-Apr-10
Summary of Biomass Projects in Australia Output Primary Location Owner % heat Status Cofired fuel(s) (MWe) fuel Collie Western Power 1040 5% Trial, now C&D pulverised plantation forest mass stage coal waste and green waste Ipswich, SE CS Energy 4 x 125 No Trial pulverised wood waste Queensland coal Lake Macquarie, Delta Electricity 2 x 660 <1% Commercial pulverised wood waste Newcastle, New South mass coal Wales LIddell, New South Macquarie 4 x 500 <1% Commercial pulverised wood waste Wales Generation mass coal (sawdust, shavings) Lithgow, New South Delta Electricity 2 x 660 No Commercial pulverised wood waste Wales coal (fresh sawdust) Lithgow, New South Delta Electricity 2 x 500 <1% Commercial pulverised wood waste Wales mass coal (plantation sawmill residue and construction and demolition waste timber) Rockhampton Stanwell 4 x 350 No Trial pulverised wood waste Corporation coal (sawdust and shavings) Tarong Tarong Energy 2 x 350 No Trial pulverised wood waste coal Isis Central Ergon Energy 1 x 25.5 Commercial, bagasse Extension, Corp Ltd 2006 Queenland Maryborough, Maryborough 1 X 750 Commercial, bagasse Queensland Sugar kW, 2 X 2 1972 MW CHP Rocky Point-3, Stanwell Corp 1 X 30 Commercial, bagasse, Queenland MW CHP 2001 wood Suncoast Gold, Ergon Energy 1 X 1.5 2003 macadamian Queensland Corp MW CHP nut shells
Asia Pacific Clean Tech Handbook 217 of 348 26-Apr-10
6.4.16 New Zealand
Market Size & Growth The main source of biomass heat and power generation comes from the wood processing sector in NZ.
Biomass power generation projection in New Zealand Industry MW 2005 (PJ) 2020 (PJ) 2030 (PJ)
Sawmill 348.5 9.53 14.38 13.68
Panel 9.5 11.76 11.18
Pulp & Paper 1,293 26.83 23.41 22.83
Total 1,641.5 45.86 49.55 47.69
Source: Assessment of Possible Renewable Energy Targets – Direct Use of Biomass, Energy Efficiency Conservation Authority, NZ
Drivers & Constraints
Market Players & Competition • Blue Mountain Lumber Energy
• Mighty River Landfill
• Brightwater Hog Feed System
• Pan Pac Forest Products
Asia Pacific Clean Tech Handbook 218 of 348 26-Apr-10 northern island of Hokkaido, where Oji Paper has a large paper manufacturing plant. Chip exports through the Port of Napier provide wood fibre for Oji Paper' kraft pulp and paper operations in Japan.
• Pure Power
6.4.17 Summary of Companies in Biomass Sector Code Compay Name Market PE ratio Country Sector Cap (M Dollars)
1964.T Chugai Ro Co Ltd $261.0 23.2 Japan Machinery & Engineering
First Energy Service 9514.T Co Ltd $10.8 N/A Japan Utilities-Electrical & Gas
KUMHO PETROCHEMICAL 011780.KS CO., LTD. $602.5 N/A South Korea Chemicals
Taiwan Cogeneration 8926.TW Corp $277.0 9.1 Taiwan Electrical & Electronics
THMX.BO Thermax Ltd $1,794.3 32.4 India Machinery & Engineering
Walchandnagar WALC.BO Industries Ltd $198.0 37.8 India Machinery & Engineering
Triveni Engineering & TREI.BO Industries Ltd $759.9 15.8 India Machinery & Engineering
CRGEE.OB Clenergen Corp $54.8 N/A USA Metals - Non Ferrous
Thailand Biomass Unlisted Electricity Co., Ltd. N/A N/A Thailand Biomass Operator
Unlisted AT Biopower Co Ltd N/A N/A Thailand Biomass Operator
National Bio Energy Unlisted Limited N/A N/A China Biomass Operator
Wuhan ecoWise Unlisted Energy Co., Ltd N/A N/A China Biomass Operator
China Energy Conservation Unlisted Investment Corp N/A N/A China Biomass Operator
Unlisted Energy Advance N/A N/A Japan Biomass Operator
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 219 of 348 26-Apr-10 6.5 Hydro 6.5.1 Background Hydroelectricity is going through a revival, as it is seen as key source of uninterrupted renewable power and key to countries achieving renewable targets. Hydro also makes up a largest portion of the renewables generation of power in New Zealand (55%), China (14%), India (16%) and Japan (8%). Hydroelectricity has also evolved from large scale infrastructure projects to also include smaller microhydro projects that can just be a few MW in size.
Asia Pacific is the key region for Hydroelectricity, with over 100GW to be added by 2020.
Another key driver for hydro in APR are the carbon credits generated from CDM projects. As of 2009, there were 1,194 Hydro projects in APR which accounted for a quarter of all CDM projects in the region. China alone had 918 hydro projects in the CDM pipeline.
6.5.2 Targets & Incentives Hydroelectricity forms a major source of renewable energy, accounting for 14% of China’s total power generation. Large hydro projects are driven by government targets, while the smaller micro hydro projects have been driven by CDM projects. China makes up over 65% of the total hydro production by 2030, mainly driven by large scale infrastructure projects, such as the Three Gorges Dam.
Asia Pacific Clean Tech Handbook 220 of 348 26-Apr-10 Asia Pacific Hydro Market (MW capacity) Country 2005 Construction Planned 2020E
China 105,000 50,000 80,000 300,000
Japan 27,759 745 19,052
S Korea 1,584
Taiwan 1,910 447 440
India 31,982 13,245 8,810 94,000 by 2027
Indonesia 3,221 135 802
Malaysia 2,078 2,400 510
Thailand 3,476
Philippines 2,450 660
Australia 7,670
NZ 5,346 16 186
Source: World Energy Council, EIA, Government Publications, Estimates
Costs of Generation Estimates for cost of generation for hydro range from $40 to $60/MWh.
6.5.3 Hydroelectric Power Process Hydro power plants vary enormously in size, from fractions of megawatts for some microhydro facilities to thousands of megawatts, such as the Three Gorges Dam in China. Most of the hydro power plants included in this report are “small” hydro facilities (typically less than 10 MW).
The main criteria for a hydro power installation are elevation and depth. From an elevated head, either natural or artificial, water can be diverted through a headrace (tunnel or tube) into a turbine coupled to a generator that converts the kinetic energy of falling water into electricity. The water is then discharged through a tailrace, usually through a tunnel or canal, back into the river at a lower level. The natural factors which affect hydro power potential are the quantity of water flow and the height of the head. Flow roughly relates to average annual precipitation and the head depends, basically, on topography.
Power capacity in a flow of water (Q cubic metre per second) is the flow of the water times the height or head (H) the water can fall.
Hydro power plants can generally be divided into three different categories depending on the type of head and the nature of the plant:
Asia Pacific Clean Tech Handbook 221 of 348 26-Apr-10 • High-head power plants are the most common and generally include a dam to store water at a higher elevation. These systems are commonly used in mountainous areas. • Low-head hydroelectric plants generally use heads up to a few metres in elevation or simply function on the run of the river. Low-head systems are typically built along rivers. • Multipurpose hydro power systems are generating facilities where the hydro power is subordinate to other activities like irrigation, industrial processes, drinking water supply or wastewater disposal. Electricity production is thus not the only objective of the plant but often a useful by-product.
The value of the hydro power produced often depends very much on the firm power which can be produced, which in turn depends on the possibilities to store water in the reservoir by the hydro power plant or in upstream reservoirs.
6.5.4 China
Market Size & Growth According to the EIA, hydro accounts for 14-15% of China’s power generation (105GW) and is expected to be a key source of renewable power in the future, with a target of 300GW by 2020. China accounts for 918 CDM projects in Hydro and is the largest single source of CDM projects for China.
The largest hydro project is the Three Gorges complex (18 200 MW), which is operated by China Yangtze <600900.SS> is gradually being brought into full operation by 2010.
The installed capacity of small hydropower in China is estimated to be about 30 GW. China has about 8 300 MW of pumped-storage capacity, with 7 600 MW under construction.
Other major hydro projects listed as under construction, with completion expected in the period 2009-2013, include:
Summary of Hydro Projects in China Project Capacity Three Gorges Dam 18,200MW Shuibuya 1 840 MW Pubugou 3 600 MW Longtan 5 400 MW Xiloudu 1 500 MW Laxiwa 4 200 MW Xiaowan 4 200 MW Goupitan 3 000 MW Pumped Storage 7,600 MW Total 49,450MW
Asia Pacific Clean Tech Handbook 222 of 348 26-Apr-10 Drivers & Constraints
China has put in place a 300GW target for hydro capacity by 2020 and will contributed around three quarters of the renewable target.
Market Players & Competition • China Yangtze <600900.SS> generates and supplies hydropower to Central, South and East China. The company has a total consolidated installed capacity of 8,714MW from its two core assets, the Gezhouba Dam (3,114MW) and eight units of the Three Gorges project (5,600MW) and plans to acquire the remaining 18 units (12,600MW) from the parent company in the future. Yangtze has also acquired recent exposure to thermal generation, although the portfolio remains dominated by hydro.
• China Power International <2380.HK> acquired 63% of Wuling Power, which owns attributable hydropower capacity of 3.6GW. CPI’s capacity mix will change from 100% coal to 19% hydro that will increase to around 21% by 2011.
6.5.5 Japan
Market Size & Growth According the EIA, hydroelectricity accounts for around 8-9% of total power generation, with about 22GW capacity. The government revised it power generation mix in 2009, but kept hydro at 8-9% by 2020.
It expected that 745 MW of conventional hydro capacity was under construction in 2005. Most of the sites suitable for the installation of large-scale conventional hydroelectric plants have now been developed. The great majority of the larger hydro projects presently under construction or planned in Japan are pumped-storage schemes. It is reported that 7,520 MW of pumped storage was under construction. Developed small-hydro capacity at end-2005 was about 3.5 GW, equivalent to 12.5% of total hydro capacity. Capacity planned for construction totalled 106 MW, with a probable annual generation of 478 GWh.
Drivers & Constraints Hydro is the largest contributor in the renewable energy. However, most of the large potential sites have already been developed and there is limited additional capacity.
Market Players & Competition
• J-POWER <9513.T> has a total hydro-generating capacity of 8,550 MW in 59 locations around Japan. To cope with increasing electric power demand and higher peak demand, the company has continued to build and operate mid-size hydroelectric power stations and large- scale pumped-storage power stations. Besides, entrusted by the Japanese government, J- POWER became the first company in the world to build and operate a 30 MW sea-water pumped-storage generation plant.
Asia Pacific Clean Tech Handbook 223 of 348 26-Apr-10 6.5.6 South Korea
Market Size & Growth
Based on EIA data, the capacity for Hydro is not expected to growth by 2030 and stay at around 1.6GW capacity.
Drivers & Constraints
Korea has embarked on a push to increase its share of renewable energy in its power generation. However, due to limited hydro potential, it will focus its efforts on other sectors.
Market Players & Competition • KHNP
6.5.7 Taiwan
Market Size & Growth
Taiwan generated around 1,911 MW from Hydro.
Drivers & Constraints Hydro forms part of Taiwan’s Energy Policy, which aims to increase contribution from renewable energy to 12.5% by 2035.
Market Players & Competition
Taipower is the vertically integrated utilty and operates existing hydro plants.
6.5.8 India Hydro accounts for 16% of India’s power generation and is seen as a key component of MNRE’s targets. India has 150 Hydro projects in the CDM pipeline.
Market Size & Growth India has around 34GW generated from hydroelectricity from 55 plants and accounts for 25% of total power generated. There is an expected increase of around 13GW under construction and further 8GW planned.
The largest hydro plants currently under construction are Subansiri Lower (2 000 MW), Parbati II (800 MW), Omkareshwar (520MW) and Teesta V (510 MW).
Asia Pacific Clean Tech Handbook 224 of 348 26-Apr-10 There are about 420 small-scale hydro plants in operation, with an aggregate installed capacity of about 1 423 MW, with a further 521 MW of smallscale capacity is under construction.
Drivers & Constraints
As part of the 12th Five Year Plan (2012-17), the government has identified an additional 38,242MW to be added in that time period.
Based on the 2005 Electricity Plan, India, the government expects to increase hydro capacity to 94,000 MW by 202744
Market Players & Competition • National Hydroelectric Power Corporation Ltd
• Malana Power Company Ltd
• Jaiprakash Hydro-Power Limited (JHPL)
• S. Kumar Group
6.5.9 Singapore
Market Size & Growth
Not applicable
44 India Central Electricity Authority
Asia Pacific Clean Tech Handbook 225 of 348 26-Apr-10 Drivers & Constraints
Not applicable
Market Players & Competition
Not applicable
6.5.10 Indonesia
Market Size & Growth Hydro presently provides approximately 12% of Indonesia's electricity supply, with around 3.2GW of capacity. There is around 135 MW of hydroelectric generating capacity was under construction at end-2005 and 802 MW of additional hydro capacity is planned. Key Hydro electricity plants include:
Summary of Hydro Projects in Indonesia Project Capacity Company Operation
Balambano, South 2 X 70 MW PT Inco 1999-2000 Sulawesi
Cirata, West Java 8 X 126 MW PT Pembangkitan Jawa 1988-1998 Bali
Kotapanjang, Riau 3 X 38 MW PT PLN 1998
Larona, South Sulawesi 3 X 65 MW PT Inco 1977
Musi, South Sumatra 3 X 70 MW PT PLN 2006
Saguling, West Java 4 X 178-MW PT Indonesia Power 1986-1987
Sudirman, Central Java 3 X 61.5-MW PT Indonesia Power 1988-1989
Drivers & Constraints
Indonesia has targeted Hydro, as a key resource to increase it share of renewable energy and set a target of 2.9GW by 2025. Mini Hydro is included in the Feed in Tariff (FIT) for renewable energy
Market Players & Competition • PLN
Asia Pacific Clean Tech Handbook 226 of 348 26-Apr-10 supply monopoly to spark interest among independents to build more capacity for sale directly to consumers.
• PT Inco is an Indonesia-base nickel producer. The Company's main activities are the exploration and mining, processing, storage, transportation and marketing of nickel and associated products. The Company's production facility and mine are in Sorowako, Sulawesi, where it has a contract agreement until 2025.
6.5.11 Malaysia
Market Size & Growth There is a substantial potential for hydro development, with a total technically feasible potential of about 123 TWh/yr, most of which is located in Sarawak (87 TWh/yr) and Sabah (20 TWh/yr). The major Hydro project in Malaysia is the 2 400 MW Bakun hydro project in Sarawak and the 300 MW plant at Ulu Terengganu a 210 MW scheme at Sungai and Pelus.
Summary of Hydro Projects in Malaysia Project Capacity Company Operation
Bakun 2,400 MW
Hulu Terengganu 212MW Tenaga Nasional 2013
Sungai 210MW Tenaga Nasional
Pelus 210MW Tenaga Nasional
Source: Company Reports
Drivers & Constraints
Hydro is a key sector for Malaysia and will account for most of Renewable Energy contribution, contributing about 17% of the total power generation.
Market Players & Competition
• Tenaga Nasional, the largest electricity utility company in Malaysia and is owned by the Government.
6.5.12 Thailand
Market Size & Growth Thailand has around 3.5GW in Hydro capacity, but is not expected to increase capacity, as the focus in renewable energy will be on solar, wind and biomass.
Drivers & Constraints
There is no target set for hydro, as part of the 15 Master Plan to raise the contribution of renewable energy to 20% and reduce its reliance on natural gas. Thailand does have a FiT for
Asia Pacific Clean Tech Handbook 227 of 348 26-Apr-10 mini hydro to promote renewable energy from hydro, as part of the Small Power Producer (SPP) and Very Small Power Producer (VSPP) programs, although most projects are in biomass.
NEPC Proposed Feed in Tariffs in Thailand Project Type Current Adder New Adder Special Adder Special Southern Adder (THB/kWh)
Minihydro 50-200 0.40 0.80 1.00 1.00 kW
Minihydro< 50kW 0.80 1.50 1.00 1.00
Source: NEPC
Market Players & Competition • Electricity Generating Authority of Thailand (EGAT)
• Ratchaburi Electricity
6.5.13 Philippines
Market Size & Growth The Philippines has about 2.4GW in installed capacity for hydro, making up around 15% of the total generation.
Drivers & Constraints The main driver for hydro power will be the Renewable Energy Act that will produce a Renewable Portfolio Standard (RPS) that will be defined in 2010 and is expected to include a target hydro. A Feed-in-Tariff (FiT) will be finalized in 2010 and will incentivize the production of power from minihydro projects.
Market Players & Competition • EDC
• Aboitiz
Asia Pacific Clean Tech Handbook 228 of 348 26-Apr-10 6.5.14 Australia
Market Size & Growth Australia has three large generators of hydroelectricity, with around 6-7GW of capacity and making up about 6% of Australia’s total power capacity.
In addition, there are also prospects for increased contributions from mini-hydro projects. Private development of small-scale grid-connected hydro has been taking place in Australia since the mid-1980s, with the first significant project undertaken by Melbourne Water on the Thompson Dam.
Drivers & Constraints
Hydro has been identified as a renewable source, as part of the RET that aims to increase its renewable target to 20%. However, given Australia’s limited hydro potential, it will be hard to significantly increase capacity.
Market Players & Competition • Snowy Hydro
• AGL Energy
• Hydro Tasmania
6.5.15 New Zealand
Market Size & Growth
Hydroelectricity is the largest contributor to the electricity market generating around 5.3GW of power and make up 55-60% of the total power capacity. The main hydro projects are:
Summary of Hydro Projects in New Zealand Project Capacity Tongariro Power Scheme 360MW Waikato 1,052MW Waitaki 873MW Clutha River 765MW Manapouri 850MW
Asia Pacific Clean Tech Handbook 229 of 348 26-Apr-10
Drivers & Constraints The Energy Strategy set a target of generating 90% of New Zealand’s electricity from renewable energy sources by 2025, with hydro making up the largest contribution, with over 50-60% of total power generation. However, the new government announced in 2009 that it is revising the Energy Strategy to focus on security of supply.
Market Players & Competition • Contact Energy
6.5.16 Summary of Companies in Hydro Sector Code Compay Name Market PE ratio Country Sector Cap (M Dollars)
China Yangtze Power 600900.SS Co Ltd $20,611.2 25.2 China Utilities-Electrical & Gas
China Power International 2380.HK Development Ltd $1,263.4 N/A Hong Kong Utilities-Electrical & Gas
Electric Power 9513.T Development Co Ltd $5,628.0 15.7 Japan Utilities-Electrical & Gas
National Hydroelectric NHPC.BO Power Corp Ltd $8,540.3 N/A India Utilities-Electrical & Gas
Ratchaburi Electricity Generating Holding RATC.BK PCL $1,638.0 7.9 Thailand Utilities-Electrical & Gas
Energy Development EDC.PS Corp $2,354.1 N/A Philippines Utilities-Electrical & Gas
AP.PS Aboitiz Power Corp $1,945.0 17.8 Philippines Utilities-Electrical & Gas
AGK.AX AGL Energy Ltd $6,203.5 53.8 Australia Energy Sources
CEN.NZ Contact Energy Ltd $2,567.9 19.9 New Zealand Utilities-Electrical & Gas
Unlisted KHNP N/A N/A South Korea Hydro Utility
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 230 of 348 26-Apr-10 6.6 Wave & Tidal Technology 6.6.1 Background Ocean technology is still a nascent market and not as developed as solar or wind technology. Australia and New Zealand lead the region with pilot programs in place. In most countries, ocean technology is not part of the renewable portfolio with any targets set or defined. This section falls into two main categories: Wave and Tidal.
6.6.2 Targets & Incentives Wave and Tidal Technology is still a nascent sector, with most projects still in pilot phase. Cost of generation is still high and can be as high as $225/MWh, making it cost prohibitive, when compared with other renewables, although this cost is expected to fall rapidly, as standards are set and a leading technology emerges.
Summary of Tidal Projects in Asia Pacific Country Country Mean tidal Basin area Installed Approxim Annual range (m) (km2) capacity (MW) ate plant annual load output factor (TWh/ (%) year)
Australia Secure Bay (Derby) 7.0 140 1 480 2.9 22
Walcott Inlet 7.0 260 2 800 5.4 22
India Gulf of Kutch 5.0 170 900 1.6 22
Gulf of Khambat 7.0 1 970 7 000 15.0 24
South Korea Garolim 4.7 100 400 0.836 24
Cheonsu 4.5 - - 1.2 -
Source: World Energy Council
6.6.3 Wave & Tidal Process
Wave Unlike large wind turbines, there is a wide variety of wave energy technologies, resulting from the different ways in which energy can be absorbed from the waves, and also depending on the water depth and the location (shoreline, near-shore, offshore).
Several methods have been proposed to classify wave energy systems, according to location, to working principle and to size (“point absorbers” versus “large” systems), with the lading technology, based around Oscillating Water Column (OWC).
Asia Pacific Clean Tech Handbook 231 of 348 26-Apr-10 Figure 6.15 – Wave Technologies
Oscillating Water Fixed Structure Isolated Column Pico, LIMPET
Floating In breakwater
Mighty Wale, Ocean Energy, Sakata, Mutriku
Translation (Heave)
Aquabuoy, IPS Buoy
Oscillating Bodies Floating Rotation
Pelamis, PS Frog, SEAREV
Submerged Translation (Heave)
AWS Rotation (Bottom Hinged)
Wave roller, Oyster
Overtopping Fixed Structure Shoreline (with concentration)
TAPCHAN
Floating (with In breakwater (w/o
Wave Dragon SSG
Tidal There are two main leading technologies:
• Tidal Fences are effectively barrages which are deployed across the mouth of an estuary. The most advanced plan is for a scheme for a fence across the Dalupiri Passage between the islands of Dalpiri and Samar in the Philippines.
• Tidal turbines are the main alternative to the tidal fence. Tidal turbines function well where coastal currents run at 2-2.5 m/s. Tidal currents are both predictable and reliable, a feature which gives them an advantage over both wind and solar systems.
6.6.4 Research & Development A specialty company, Ocean Power Technologies
There is a particular drop off in patent filings in Japan and this is again reflected in lack of government targets in this area.
Asia Pacific Clean Tech Handbook 232 of 348 26-Apr-10 The academic-government group is not completely dominated by Chinese institutions, but they are a strong presence among mostly Asian universities.
% LARGER PRESENCE IN FIELD 06-08 97-08 RECE NT
GENERAL ELECTRIC CO 4 4 100
SHANGHAI JIUNENG ENERGY SCI & TECHNOLOGY 3 3 100
OCEAN POWER TECHNOLOGIES INC 9 22 41
MITSUBISHI ELECTRIC CORP 1 11 9
ENERCON - ALOYS WOBBEN 0 4 0
HITACHI LTD 0 3 0
ISHIKAWAJIMA HARIMA HEAVY IND 0 3 0
Source: Thomson Reuters Scientific
% SMALLER PRESENCE IN FIELD 06-08 97-08 RECENT
NEPTUNE ENERGY LTD 4 4 100
SAM AN CORP 3 3 100
SRI INT 3 3 100
MARINE CURRENT TURBINES LTD 2 3 67
RENERGYS GMBH 2 4 50
TOYO PLANT KK 1 3 33
WAVECREST LAB LLC 1 3 33
HYUNDAI HEAVY IND CO LTD 0 4 0
Source: Thomson Reuters Scientific
Asia Pacific Clean Tech Handbook 233 of 348 26-Apr-10 % ACADEMIC – GOVERNMENT 06-08 97-08 RECENT
CHINESE ACAD SCI ELECTRICAL ENG INST 3 3 100
UNIV TIANJIN 2 2 100
UNIV YAMAGUCHI 2 2 100
KOREA OCEAN RES & DEV INST 5 6 83
GUANGZHOU ENERGY INST RESOURCES 2 3 67
UNIV ZHEJIANG 2 3 67
UNIV SHANGHAI JIAOTONG 1 2 50
UNIV HEBEI AGRIC 1 2 50
UNIV INHA 0 4 0
KAIYO KAGAKU GIJUTSU CENT 0 2 0
Source: Thomson Reuters Scientific
6.6.5 China
Market Size & Growth
Wave China’s wave energy research has concentrated mainly on fixed and floating OWC devices. In 1995, the Guangzhou Institute of Energy Conversion of the Chinese Academy of Sciences successfully developed a symmetrical turbine wave-power generation device for navigation buoys rated at 60 W. Over 650 units have been deployed along the Chinese coast, with a few exported to Japan. Other wave energy projects in China include:
• Oscillating Water Column (OWC) at Shanwei in Guangdong province consisting of a two chambered device with a total width of 20 m, rated at 100 kW began operating in September 1999; • kW Backward Bent Duct Buoy (a floating OWC with the opening to the OWC chamber pointing towards the land) in association with Japan; • Shoreline pivoting flap device (Pendulor) developed by Tianjin Institute of Ocean Technology of the State Oceanic Administration; • kW shoreline OWC was installed on Dawanshan Island (in the Pearl River estuary), which is being upgraded with a 20 kW turbine.
Tidal The south-eastern coastal areas of Zhejiang, Fujian and Guangdong Provinces are considered to have substantial potential for tidal energy. Currently there are seven tidal power stations with a total capacity of 11 MW. It was announced in November 2006 that China had signed a joint venture with the Italian engineering company Ponte di Archimede International for the application of its patented Kobold turbine to a site in the Strait of Jintang, in the Zoushan Archipelago.
Asia Pacific Clean Tech Handbook 234 of 348 26-Apr-10 Drivers & Constraints
China has announced a renewable energy target of 20% by 2020. However, there are no defined capacity targets for wave and tidal technologies.
Market Players & Competition
Wave • SDE Technology
• Chinese Academy of Sciences Guangzhou Institute of Energy Conversion recently completed a test on a pilot wave power system
Tidal • Tidal Electric
• Harbin Engineering University developed a Tidal Power Plant (TPP) in 2006 in Daishan County of eastern China's Zhejiang province. The 40 kW tidal power station was also involved the Daishan Technology Bureau.
6.6.6 Japan
Market Size & Growth Despite having low wave-power levels, extensive research on wave energy has been undertaken in Japan, which deployed one of the first wave-energy devices (the floating OWC, ‘Kaimei’), followed by another floating OWC (the ‘Mighty Whale’ in 1989). Particular emphasis has been placed on the development of air turbines and on the construction and deployment of prototype devices (primarily OWCs), with numerous schemes having been built:
• a 40 kW OWC was deployed in 1983 on the shoreline structure at Sanze for research purposes. It has since been decommissioned; • a five-chambered 60 kW OWC was built as part of the harbour wall at Sakata Port in 1989; • 10 OWCs were installed in front of an existing breakwater at Kujukuri beach, Chiba Prefecture. The air emitted from each OWC was manifolded into a pressurised reservoir and used to drive a 30 kW turbine. This scheme was operational between 1988 and 1997; • a 130 kW OWC was mounted in a breakwater in Fukushima Prefecture in 1996. This used rectifying valves to control the flow of air to and from the turbine; • a floating OWC known as the Backward Bent Duct Buoy was deployed in Japan in 1987. This continues to be developed in co-operation with institutes in China and Ireland; • the Pendulor wave energy device has been developed by the Muroran Institute of Technology. Wave action causes pendulum oscillations of a plate (‘pendulor’) at the
Asia Pacific Clean Tech Handbook 235 of 348 26-Apr-10 entrance to a box, this movement being used in conjunction with a hydraulic power take- off to generate electricity. • The only significant wave-energy device currently being studied is an OWC deployed at Niigata in 2005.
Drivers & Constraints The Government established the Basic Plan on Ocean Policy in March 2008, which acts as the guide for ocean policy for the next five years. The plan includes 12 government measures, including development and commercialisation of submarine resources such as methane hydrate, polymetallic sulphides, wave-power generation and tidal-power.
The New Energy and Industrial Technology Development Organization (NEDO) undertook a survey identifying existing and potential technology for ocean energy.
However, unlike wind or solar energy, ocean energy is not included in the New Energy Law. As a result, there are no government targets or financial assistance for ocean energy and this will be a limiting factor, in the development of this technology in Japan.
Market Players & Competition • Ocean Power Technologies Inc
6.6.7 South Korea
Market Size & Growth South Korea has developed two tidal projects: Sihwa Lake and Wando Hoenggan Water Way.
It was announced in mid-2005 that the country’s first tidal power plant was to be constructed at Sihwa-Lake, 25 km southwest of Seoul on the Water Resources Corporation acting as project developer. The artificial lake was created between 1987 and 1994 to provide water for agricultural purposes. A dam curtailing the tidal currents was constructed but the quality of the water deteriorated, becoming heavily polluted following a rise in local industry and a consequent increase in factory wastes.
A sophisticated plan has been formulated whereby the power plant will utilise the head between high tide on one side and the level of the lake on the other. The scheme will not only provide generation of electricity but also environmental improvements and tourist attractions. The Korean Energy Economics Institute reported in April 2007 that construction of the 254 MW plant will be completed by July 2008 and that annual power generation is expected to be in the region of 550 GWh. On completion Sihwa-Lake will be the world’s largest tidal energy plant.
In May 2007 the city of Incheon announced that it had signed an MOU with Korea Midland Power Co. and Daewoo Engineering and Construction to build the Ganghwa tidal plant. At 812 MW, the 32-generator plant would overtake the Sihwa-Lake project to be the world’s largest tidal scheme
Asia Pacific Clean Tech Handbook 236 of 348 26-Apr-10 when the plant becomes operational – planned for 2015. A 7.8 km long dam will connect four islands: Ganghwa, Gyodong, Seokmo and Seogeom.
Drivers & Constraints In order to encourage the development of tidal power and other renewable energy schemes, the South Korean government has introduced a target of boosting the proportion of renewable energy in the generation mix to 5% by 2011.
Market Players & Competition
Tidal • Korea Water Resource Corporation
• Korean Midland Power Co
6.6.8 Taiwan
Market Size & Growth Taiwan has proposed a demonstration project to promote marine energy and prove the viability of wave energy converters in Taiwanese waters, leading to further development and the installation of up to 75MW of capacity by 2025.
Drivers & Constraints There are no defined Renewable Targets for Wave or Tidal Power, except for a 75MW target for 2025.
Market Players & Competition
Wave • Ocean Navitas
6.6.9 India
Market Size & Growth
Wave The Indian wave energy program started at the Institute of Technology (IIT) under the sponsorship of the Department of Ocean Development. The National Institute of Ocean
Asia Pacific Clean Tech Handbook 237 of 348 26-Apr-10 Technology (NIOT) succeeded IIT and continues to research wave energy including the Backward Bent Duct Buoy (a variant of the OWC design).
Tidal The main potential sites for tidal power generation are the Gulf of Kutch, the Gulf of Khambhat (Cambay) and the Gangetic delta in West Bengal. The tidal ranges of the Gulf of Kutch and the Gulf of Khambhat have a capacity of 900 and 7 000 MW, respectively. The West Bengal Renewable Energy Development Agency (WBREDA) prepared a project report (on behalf of the Ministry of Non-Conventional Energy Sources) for a 3.65 MW demonstration tidal power plant at Durgaduani Creek in the Sundarbans. In February 2007 the WBREDA stated that it had engaged the National Hydroelectric Power Corporation to implement the Rs 400 million (approximately US$ 10 million) project on a turnkey basis.
Drivers & Constraints There are no defined targets for wave or tidal power generation, as part of the 5 year plan.
Market Players & Competition
Wave • National Institute of Ocean Technology, Chennai. The institute is the technical arm of the Ministry of Earth Sciences, Government of India, working towards development and demonstration of field-scale models of ocean renewable energy devices. As a part of its mandate, NIOT has setup a 100 m3/day island-based low-temperature thermal desalination plant at Kavaratti, India, in 2005 and demonstrated a 1 000 m3/day experimental barge- mounted desalination plant off Chennai Coast, India, in 2007. Currently, work is underway to establish three island-based desalination plants in three remote islands in the Lakshadweep region of India, scheduled to be commissioned by June 2009. NIOT is also working on wave powered devices meant for remote islands.
Tidal • National Hydroelectric Power Corporation
6.6.10 Philippines
Market Size & Growth
Tidal A tidal fence across the Dalupiri Passage between the islands of Dalpiri and Samar was proposed in 1997 between the Philippines Government and Blue Energy Engineering Company. The site, on the south side of the San Bernardino Strait is expected to generate up to 2200 MW of peak power (with a base daily average of 1100 MW). However work stopped in 1998, due to the Asian Financial Crisis.
Asia Pacific Clean Tech Handbook 238 of 348 26-Apr-10 Drivers & Constraints Philippines enacted the Renewable Energy Law in 2008 and expected to define renewable energy targets in 2010. However, it is unlikely that there will be any allocation of wave and tidal power, as part of the RPS.
Market Players & Competition • Blue Energy Company
6.6.11 Indonesia
Market Size & Growth Indonesia has been indentified as a country with tidal power resources. However, there are no plans to develop any demonstration or pilot projects.
Drivers & Constraints There are no renewable energy targets includes for marine and tidal power generation.
Market Players & Competition Not applicable
6.6.12 Thailand
Market Size & Growth No projects planned
Drivers & Constraints There is no renewable energy target included for marine and tidal power generation.
Market Players & Competition Not applicable
6.6.13 Malaysia
Market Size & Growth No projects planned.
Drivers & Constraints There is no renewable energy target included for marine and tidal power generation.
Market Players & Competition Not applicable
Asia Pacific Clean Tech Handbook 239 of 348 26-Apr-10 6.6.10 Australia
Market Size & Growth Australia has a number of projects in wave and tidal power, with a number of companies setting up pilot schemes. Key projects include:
Project Capacity Company Technology
Port Kembla 500kW Oceanlinx Wave
Exmouth Carnegie Wave Wave
King Island Bio Power Wave
Philip Island 150kW Atlantis Wave
Secure Bay (Derby) 1 480MW Derby Hydro Power Tidal
Walcott Inlet 2 800MW Tidal
Flinders Island Bio Power Tidal
Source: Company Publications
Drivers & Constraints There are no specific programs or FiTs for Australia for ocean energy, but an expanded program has aimed at increasing the installed capacity of renewable energy within Australia, as part of the government’s target of 20% for renewables. Australia leads the regions in companies and projects in this sector, with a number of projects rolled out including:
Market Players & Competition
Wave • Oceanlinx
• Carnegie Wave Energy
Asia Pacific Clean Tech Handbook 240 of 348 26-Apr-10 • Bio Power Systems
• Ocean Power Technologies
• $66.5m grant from the Australian government;
• Entering Japanese market;
• continuing to build its relationship with partners (e.g. LMT)
• diversifying its revenue base /broadening product applications (successful trial of OPT’s Underwater Substation Pod, new Navy contract to provide a wave energy conversion system) and
• on track to deploy its first PB150 in mid-CY 2010
• Atlantis Resources Corporation
Tidal • Derby Hydro Power
Asia Pacific Clean Tech Handbook 241 of 348 26-Apr-10 channel. Power take-off would be achieved from a bank of turbines housed in a structure built in this channel.
6.6.11 New Zealand
Market Size & Growth Project Capacity Company Technology
Kaipara Harbour Crest Energy Kaipara Tidal
Cook Strait 1MW Neptune Power Tidal
Tory Channel 1MW Energy Pacifica Tidal
Source:
Drivers & Constraints There are no national targets for deployments of marine energy projects. However, the recently published New Zealand Energy Strategy set a target of 90% of generation to come from renewable sources by 2025 (currently 65%). The New Zealand government announced the first award of funds from the Marine Energy Deployment Fund (MEDF). The fund aims to promote marine energy by offering NZD 2 million per year over the next four years for the deployment of prototypes in New Zealand waters. The first award – of NZD 1.85 million – was made to Crest Energy Kaipara Limited to assist in the deployment of three tidal turbines in New Zealand’s largest harbour, the Kaipara Harbour. The company plans to deploy up to 200 tidal turbines progressively over 10 years.
Asia Pacific Clean Tech Handbook 242 of 348 26-Apr-10 Market Players & Competition
Wave • Ocean Power Delivery
Tidal • Crest Energy Kaipara Limited
• Neptune Power
• Energy Pacifica Limited
6.6.12 Summary of Companies involved in Wave/Tidal Technology Code Compay Name Market PE ratio Country Sector Cap (M Dollars) Carnegie Wave CWE.AX Energy Ltd $54.8 N/A Australia Energy Sources Ocean Power OPTT.O Technologies Inc $70.3 N/A USA Utilities-Electrical & Gas National Hydroelectric NHPC.BO Power Corp Ltd $8,540.3 N/A India Utilities-Electrical & Gas Unlisted Atlantis Resources N/A N/A Singapore Tidal Unlisted Derby Hydro Power N/A N/A Australia Tidal Unlisted Oceanlinx N/A N/A Australia Wave Unlisted Bio Power Systems N/A N/A Australia Wave Unlisted Crest Energy N/A N/A New Zealand Wave Unlisted Neptune Power N/A N/A New Zealand Wave Unlisted Energy Pacifica N/A N/A New Zealand Wave Korea Water Unlisted Resource Corporation N/A N/A South Korea Tidal Code Compay Name Market PE ratio Country Sector Cap (M Dollars)
Asia Pacific Clean Tech Handbook 243 of 348 26-Apr-10 6.7 Geothermal 6.7.1 Background Located on the “Ring of Fire”, Asia Pacific has the largest potential natural resource for geothermal energy in countries including” Japan, New Zealand, Indonesia, Philippines and Papua New Guinea. In addition, with the advancement of new drilling techniques and Enhanced Geothermal Systems (EGS), countries such as Australia have started to commercialise their geothermal ‘hot rock’ resources.
Indonesia and Philippines have the largest installed geothermal capacity in the region. While Australia, seem to be leading the region in the new EGS space, with 9 companies launched on the ASX to exploit this resource. China and Korea also appear to be investigating their respective geothermal potential.
6.7.2 Targets & Incentives
Asia Pacific Geothermal Market (MW capacity) Country 2007 2010E 2015E 2020E
China 28 28 28 28
Japan 535 535 535 535
S Korea 21 21 21 21
Taiwan 0 50
India 0
Australia 0.12 10,000GWh*
NZ 452
Indonesia 992 1,900 9,500
Malaysia 0
Thailand 0
Philippines 1,970
Source: GIA, EIA, Government Publications, Estimates
6.7.3 Geothermal Process and Technologies Geothermal technology depends on the type and location of the natural resource. Since it is not practical to transport high-temperature steam over long distances by pipeline due to heat losses, most geothermal plants are built close to the resource. A geothermal system consists of three main elements: a heat source, a reservoir and a fluid. The heat source can be either a very-high- temperature (> 600°C) magmatic intrusion that has reached relatively shallow depths (5 to 10 km)
Asia Pacific Clean Tech Handbook 244 of 348 26-Apr-10 or, as in certain low temperature systems, the Earth’s normal temperature, which increases with depth. The heat source is natural, whereas the fluid and the reservoir can be introduced.
Geothermal power plants tend to be in the 20 MW to 60 MW range and the capacity of a single geothermal well usually ranges from 4 MW to 10 MW. Typical minimum well spacing of 200 m to 300 m is established to avoid interference. There are three main power plant technologies are being used to convert hydrothermal fluids to electricity. The type of conversion depends on the state of the fluid (steam or water) and on its temperature:
• Dry steam power plants use hydrothermal fluids primarily in the form of steam. The steam goes directly to a turbine, which drives a generator that produces electricity. This is the oldest type of geothermal power plant.
• Flash steam power plants use hydrothermal fluids above 175°C. The fluid is sprayed into a tank (separator) held at a much lower pressure than the fluid, causing some of the fluid to vaporise rapidly, or “flash” to steam. The steam then drives a turbine.
• Binary-cycle power plants use hot geothermal fluid (below 175°C) and a secondary (hence, “binary”) fluid with a much lower boiling point than water – both passing through a heat exchanger. Heat from the geothermal fluid causes the secondary fluid to flash to steam, which then drives the turbines. Since binary-cycle generation system makes moderate-temperature geothermal fluids usable for power generation, this is being explored in countries with lower temperature geothermal resources.
The total energy efficiency is around 10% for electricity production. Because geothermal power plants operate at relatively low temperatures compared to other power plants, they eject as much as 90% of the heat extracted from the ground into the environment. The minimum temperature for electricity generation is 90°C.
Despite the relatively low efficiency in power generation, geothermal does not suffer from intermittency issues and can operate 24 hours per day and thus provide base-load capacity.
A relatively new concept in geothermal power is “Hot Dry Rock” (HDR), also known as “Hot Wet Rock” (HWR), “Hot Fractured Rock” (HFR) and “Enhanced Geothermal Systems” (EGS). The basic concept is to increase the permeability of the natural fractures of the basement rocks, install a multi-well system, force the water to migrate through the fracture system (“reservoir”) by using enhanced pumping and lifting devices and, finally, use the heat for power production. HDR is expected to contribute to further geothermal development in the decades to come and is the technology use for geothermal production in Australia.
6.7.4 China
Market Size & Growth China only has around 30MW geothermal capacity in Tibet, at there main locations at Yangbajain (24MW), Langju (2MW) and 1 MW binary power station in Nagqu. There are also two small 300 kW plants are operating in Guangdong and Hunan.
Asia Pacific Clean Tech Handbook 245 of 348 26-Apr-10 There are not any targets for growth in geothermal capacity in China, as part of the 2020 target. However the following was proposed by the geothermal community in China:
• Accelerate the exploration and use of the deep reservoirs at Yangbajing. The objective would be to meet the electric needs of the Lhasa area.
• Develop the Yangyi Geothermal Field with a modern 10 MW-size power plant.
• Explore the deep reservoirs in the Naqu Field and expand the existing installed capacity.
• Establish a 3 - 5 MW pilot project at the Ruili Geothermal Field, followed by development of the Rehai Field with a 10 MW plant.
• Develop the fields around Litang in western Sichuan.
Drivers & Constraints
China’s geothermal resources are limited to Tibet and Western China. There are not any targets for growth in geothermal capacity in China, as part of the 2020 target and this will limit capacity growth.
Market Players & Competition No companies identified in this sector.
6.7.5 Japan
Market Size & Growth Japan, as a volcanic country, is blessed with potential geothermal resources for development. However, the construction of geothermal power plants has been restricted, due to factors such as the restrictions in National Parks and hot spring (onsen) resort areas. Capacity stands at 534 MW and not projected to grow.
However, Mitsubishi Materials Corp., Kyushu Electric Power Co. and several other Japanese firms announced plans in 2009 to start developing geothermal power for the first time in nearly 20 years. Mitsubishi Materials and J-Power plan to collectively invest 40 billion yen ($433.9 million) to build a geothermal power plant in the Akita Prefecture in northern Japan to start operations in 2016. Mitsubishi currently owns two geothermal power plants while J-Power has one. A desire to build generate clean power is fueling the resurging interest in geothermal power. Tapping steam and hot water for generating electricity also could help the country meet its goals of cutting greenhouse gas emissions.
Drivers & Constraints The “Renewables Portfolio Standard Law” was enacted in 2003, where geothermal energy was included as renewable energy in this law in 2006. However, there is no stand-alone geothermal legislation which defines geothermal resources, governs their use or development in Japan. Total capacity remains at about 534 MW.
Asia Pacific Clean Tech Handbook 246 of 348 26-Apr-10 Geothermal research at national universities (Kyushu and Tohoku) and AIST is supported by grants from the government. Other institutions that fund geothermal R&D are CERL in CRIEPI.
Market Players & Competition While there is no proposal to increase geothermal capacity in Japan, Japans’ turbines and generators still have 75% share in the world geothermal power plants and export to other markets, such as Indonesia and Philippines. Key manufacturers are MHI, these makers still continue to invest in these R&D fields
• Fuji Electric Systems Co., Ltd <6654.T> supplies turbines and generators as a single package for flash steam geothermal plants of 30 MW capacity.
• Mitsubishi Heavy Industries <7011.T> is involved in the design, manufacture, installation, and servicing of flash steam power plants.
• Toshiba Corp <6502.T> Its product range includes flash steam turbines, binary cycle power generating equipment, and the Super Rotor Package for geothermal turbine using its latest advanced technology.
• Mitsubishi Materials <5711.T> and J-Power plans to invest roughly 40 billion yen ($433.9 million) and construct a geothermal power plant in Yuzawa in Akita Prefecture, northern Japan.
• Kyushu Electric Power <9508.T> operates 5 geothermal power stations with a total capacity of 209,500kW, about 40% of Japan's total.
6.7.6 South Korea
Market Size & Growth Though Korea’s geothermal resources are characteristically low-temperature hot springs associated with localized, deep fractures, a high heat flow anomaly was recently discovered and is being investigated in the Pohang geothermal development program. Geothermal heat pump installations are accelerating, with the total heat produced about doubling every year.
Drivers & Constraints The Korean Government provides support and incentives for renewables, with geothermal subsidies of about US$ 9.5 M paid in 2007. Korea’s R&D activities are concentrated on exploration and exploitation of low-temperature geothermal water for district heating and characterization of geothermal resources.
Market Players & Competition No companies identified
Asia Pacific Clean Tech Handbook 247 of 348 26-Apr-10 6.7.7 Taiwan
Market Size & Growth
Taiwan lies on major geological fault-lines along the Pacific Rim, and has abundant geothermal resources. A comprehensive exploration effort has indicated a total potential of up to 1 000 MW. However, most of the resources are located in remote areas or protected lands and that makes them difficult to develop.
Drivers & Constraints The Government has set a target of 50 MW for 2010.
Market Players & Competition Currently, a BOT project at Chin-Suei, I-Lan County is under development and is aimed at the integration of geothermal energy usage with recreational facilities. It is planned to construct a 5 MW plant by 2008.
6.7.8 India
Market Size & Growth Not a focus for India
Drivers & Constraints
Geothermal is not a focus in India
Market Players & Competition No companies identified in this sector.
6.7.9 Indonesia
Market Size & Growth Indonesia is the third largest generator of geothermal power, after the US and Philippines.
Indonesia has focused its renewable policy on geothermal, small hydro and biomass. New geothermal regulations have removed Pertamina from its central role in steamfield development and passed that responsibility to the regions.
Indonesia launched its 10,000MW program to increase its use of geothermal, as a primary source of power generation. The Indonesian government said it is studying plans to merge the geothermal units of three state-owned firms - PT PLN, oil refiner PT Pertamina and gas firm PT
Asia Pacific Clean Tech Handbook 248 of 348 26-Apr-10 Perusahaan Gas Negara. However, there are plans to encourage foreign investment for IPP generation.
Drivers & Constraints
Indonesia announced the 10 000 MW Crash Program Phase II in 2008, which aims to increase renewable generating capacity, particularly from geothermal and hydropower. Targets have been set to boost the capacity of geothermal plants to 9.5 GW by 2025.
Market Players & Competition • PLN
• Star Energy
6.7.10 Malaysia
Market Size & Growth Tawau, Sabah in Malaysia has an electricity generation potential of up to 67 MW from geothermal resources following the discovery of a geothermal site in Apas by a study by the Mineral and Geoscience Department.
Drivers & Constraints Under the Ninth Malaysia Plan the government had allocated RM1.5 million (US$ 420,000) for research on the site and it was hoped that drilling could start under the Tenth Malaysia Plan.
Market Players & Competition Geothermal is still in research and development stage and no companies have set up projects for commercialization of geothermal resources.
6.7.11 Philippines
Market Size & Growth The Philippines has a total installed geothermal capacity of 1.9GW, secondl only to the US and is a central component of its comprehensive Renewable Energy Act. .
The Philippine Department of Energy plans to offer investors four new areas for geothermal exploration. The areas are in Luzon and one is in Mindanao. The government is keen to increase the capacity, and wants to invite foreign firms to play a more prominent role in the sector.
Drivers & Constraints
The Philippine government enacted the Renewable Energy (RE) Act in 2008 and is in the process of setting renewable energy targets in 2010 that will include Geothermal Energy.
Asia Pacific Clean Tech Handbook 249 of 348 26-Apr-10 Market Players & Competition • Energy Development Corporation
• Chevron Geothermal Philippines Holding Inc.
• Aboitiz
Figure 6.17
6.7.12 Thailand
Market Size & Growth There are approximately 64 geothermal resources in Thailand, but major ones are in the north of the country, especially the geyser field at Fang District in Chiangmai Province. Survey on the
Asia Pacific Clean Tech Handbook 250 of 348 26-Apr-10 potential of geothermal energy development at Fang District commenced in 1978, with technical assistance and experts from France later in 1981.
Drivers & Constraints The main driver for renewable energy is Thailand’s 15 year Master plan. However focus on renewable energy will be on hydro, biomass and biofuels.
Market Players & Competition • Electricity Generating Authority of Thailand (EGAT)
6.7.13 Australia
Market Size & Growth Australia’s potential electricity generating geothermal resources consist of Hot Sedimentary Aquifers (HSA), e.g. Hydrothermal Groundwater Resources, and Hot Rock technologies (HR), including Hot Dry Rocks (HDR) and Hot Fractured Rocks (HFR). Geothermal generation in 2007 amounted to 1.8 GWh/yr from a 120 kW binary plant in Queensland. The total direct use installed capacity was about 130 MW.
Current investment to explore for, and demonstrate the potential of, geothermal energy for power generation in Australia is focused on:
• HR EGS plays in the South Australian Heat Flow Anomaly (SAHFA) and the eastern half of Tasmania, and
• HSA plays in the Otway and Gippsland Basins in the States of South Australia and Victoria
By the end of 2009, 33 companies applied for 277 licenses, with 9 Australian companies having reached a drilling phase in their geothermal projects. These 9 companies are listed on the ASX.
Through the expanded Renewable Energy Target (RET), the Australian government’s goal is to have at least 20 per cent of Australia’s electricity supply coming from renewable energy sources by 2020. This will provide a cross-subsidy to the renewable energy sector worth many billions of dollars. The Australian Government's modelling shows that by 2020, geothermal projects could take up one fifth of the target, or around 10,000 GWh.
Asia Pacific Clean Tech Handbook 251 of 348 26-Apr-10 Drivers & Constraints The main driver for geothermal capacity expansion has been the RET target of 20% renewable energy target by 2020, with geothermal targeted as a key sector.
• South Australia - The Petroleum Act recently underwent a review and amendment process to be renamed the Petroleum and Geothermal Energy Act, 2000. A paper outlining proposed amendments to the Petroleum Act 2000 closed for public comment on 29 June 2007. The Petroleum (Miscellaneous) Amendment Bill 2008 was released in April 2008 for public consultation. The intended changes will increase the maximum size of geothermal licences to 3,000 km2 and lower licence fees. It is expected that the Petroleum and Geothermal Energy Act, 2000 will be enacted in the near future.
• Victoria - The Geothermal Energy Resources Act (GER Act) was passed in April 2005 and the Regulatory Impact Statement and Geothermal Energy Resources Regulations, 2006 came into effect during 2006.
• New South Wales - The Mining Act, 1992, governing geothermal exploration in New South Wales is on its final review stage for a bill amendment. Currently geothermal exploration is considered as Group 8 -Geothermal Substances. Application for a Group 8 geothermal exploration licence requires the Minister’s consent especially if it is under mineral allocation areas, usually within coal basins. In other areas of the state over the counter applications are still accepted. If successful, a maximum 5-year term is granted based on work program commitments.
• Queensland - The Geothermal Exploration Act 2004 and Geothermal Exploration Regulation 2005 provides a competitive permit system to encourage and facilitate efficient and responsible exploration for the State’s geothermal resources.
• Tasmania - Geothermal exploration and development has been covered for over a decade by the Mineral Resources Development Act (1995) (MRD Act) and using this tried legislation, exploration has been able to be conducted with little regulatory impediment or uncertainty.
• Western Australia - The West Australian (WA) Petroleum and Geothermal Energy Resources Act 1967 (PGERA67) was proclaimed on 15 January 2008, providing legislative coverage for both conventional (hydrothermal) geothermal energy and hot dry rock geothermal energy.
• Northern Territory - The Northern Territory of Australia Geothermal Energy Act, 2009 has been passed and assented to and is expected to come into operation in mid-August 2009. The NT Government is in the process of developing the Regulations, Forms and Guidelines prior to triggering the Act.
Market Players & Competition • Geodynamics
Asia Pacific Clean Tech Handbook 252 of 348 26-Apr-10 Efforts are focused in the Cooper Basin area in South Australia and three wells. Plans are to drill the fourth well, Jolokia. For a detailed company profile, see Appendix A.
• Eden Energy Limited
• Petratherm Limited
• Torrens Energy Limited
• Geothermal Resources Limited
• Greenearth Energy Limited
Asia Pacific Clean Tech Handbook 253 of 348 26-Apr-10 • Panax Geothermal Limited
• Green Rock Energy
• KUTh Energy Limited
6.7.14 New Zealand
Market Size & Growth New Zealand is located has an abundance of natural geothermal resources and currently generates 452MW (5%) of its power from Geothermal and is expected to increase its capacity with the potential development of an additional 600 MW over the next few years. Contact Energy and Mighty River Power have stated that they each expect to spend about NZ$ 1 billion in developing geothermal resources over the next 10 years.
Asia Pacific Clean Tech Handbook 254 of 348 26-Apr-10 The NZ Government banned all new fossil fuel (non-renewable) power plants for the next 10 years in 2007 and Geothermal was recognised as a resource vital to New Zealand’s future energy mix and is economically competitive at the current average wholesale electricity cost of about US$50/MWh and could double with the correct incentives in place.
However, there are no direct government incentives, in the form of renewable energy feed-in tariffs (FiT) or subsidies in New Zealand. Total capital costs of generation from new geothermal plants now average about NZ$ 3-4 M/MW installed. Drilling costs have increased significantly in recent years by about 50% to about NZ$ 4 M/2km for a deep well.
Geothermal comprises about 4.9 % of the national capacity. However, it generates 7.7 % of the total national electricity.
Summary of New Zealand Geothermal Power Projects
Capacity Direct Use Constructing Planned Geothermal Start Date System (MW) (MW) (MW) (MW)
Wairakei 1958-2005 176 234-162
Poihipi 1996 55
Tauhara Centennial 2007 100 23
Tauhara Expansion 220
Kawerau 1958 14 200 100
Ka 24 10
Ohaaki (104 MWe) 1989 50
Rotokawa 1997 35 132
Mokai 1999-2007 112
Ngawha 1998 10 15
Ngatamariki 80
Total 452 300 125 527
Source: GIA
Drivers & Constraints New Zealand has the highest percentage of power generated from renewable energy in Asia Pacific and a number of regulations and policies that is supposed to drive that number up to 90% by 2025. However, a change in government in 2008 has forced a review of the Energy Strategy and may impact the projected growth in geothermal energy in New Zealand.
Asia Pacific Clean Tech Handbook 255 of 348 26-Apr-10 Market Players & Competition Companies involved in Geothermal in NZ include:
• Contact Energy
6.7.15 Summary of Companies involved in Geothermal Code Compay Name Market PE ratio Country Sector Cap (M Dollars) Kyushu Electric Power 9508.T Co Inc $10,584.7 13.0 Japan Utilities-Electrical & Gas FUJI ELECTRIC Electronic Components & 6654.T INDUSTRY CO LTD $63.9 22.4 Japan Instruments Mitsubishi Heavy 7011.T Industries Ltd $13,117.9 1238.5 Japan Machinery & Engineering GDY.AX Geodynamics Ltd $163.7 N/A Australia Energy Sources PAX.AX Panax Geothermal Ltd $39.7 N/A Australia Energy Sources PTR.AX Petratherm Ltd $21.4 N/A Australia Energy Sources TEY.AX Torrens Energy Ltd $13.4 N/A Australia Utilities-Electrical & Gas WAS.AX Wasabi Energy Ltd $22.3 N/A Australia Utilities-Electrical & Gas Geothermal GHT.AX Resources Ltd $9.3 N/A Australia Energy Sources Green Rock Energy GRK.AX Ltd $7.0 N/A Australia Metals - Non Ferrous HRL.AX Hot Rock Ltd $8.5 N/A Australia Utilities-Electrical & Gas KEN.AX KUTh Energy Ltd $6.2 N/A Australia Energy Sources Greenearth Energy GER.AX Ltd $9.7 N/A Australia Energy Sources Energy Development EDC.PS Corp $2,354.1 N/A Philippines Utilities-Electrical & Gas AP.PS Aboitiz Power Corp $1,945.0 17.8 Philippines Utilities-Electrical & Gas Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 256 of 348 26-Apr-10 6.8 Smart Grid 6.8.1 Background The term “Smart Grid” refers to a system that incorporates information and communications technology into every aspect of electricity generation, delivery and consumption to improve reliability and service, and reduce costs and improve efficiency. The driver for a smart grid is the need to feed in and manage the intermittent renewable energy from multiple sources, such as wind and solar energy.
Countries across APR have embraced the concept of Smart Grid and recognize that it is a key component of fulfilling the various renewable energy targets. There have been a number of recent announcements from China, Japan, South Korea, Taiwan, Australia, New Zealand looking to take the lead in smart grid technology.
China, Japan, South Korea and Taiwan have targeted this sector and companies in their electronics sector see this as an extension to the electronics and solar businesses.
6.8.2 Targets & Incentives A number of recent announcement have been made by countries across Asia Pacific, in a bid to take a lead in this growing market, with China, Japan and South Korea investing about $9 billion in 2010.
• China has announced a investment in its grid system, that will include smart grid technology • Japan has launched a number of demonstration projects via NEDO and Japanese companies are looking to target the US market • South Korea has started work on its pilot scheme in Jeju Island and also targeting other countries with its smart grid technology • Taiwan has targeted a pilot scheme and Taiwanese companies • Singapore has started a pilot scheme in 2009 • Australia has a launched a 100m government fund to set up a smart grid scheme. There are also State projects in Victoria, NSW and Western Australia. • New Zealand is in the second phase of its smart grid upgrade
Asia Pacific Clean Tech Handbook 257 of 348 26-Apr-10
6.8.3 Smart Grid Process The existing power generation system has not really changed, since its invention in the late 19th century. Grids are essentially a central driven supply driven one way so that it generates and supplies power to a community, based on estimates of past demand requirements. The break up of the traditional vertically integrated utility, along with the introduction of new generating sources (IPPs and end consumers), along with separate retailers, means that there is a need for a more integrated and flexible grid that can cater for the drastic changes in both supply and demand. This new “intelligent system” is commonly referred to as the smart grid. There are five basic components required in a new smart grid system.
Asia Pacific Clean Tech Handbook 258 of 348 26-Apr-10 Figure 6.20 – Smart Grid
Generation Transmission Distribution Marketing Consumpti
Utility Utility Utility Retailer Consumer
IPP
Consumer
Demand Driven ATO ADO AMI AMR
Multiple sources Real-time simulation, Monitoring of the intelligent metering, Solutions that of generation need advanced accident distribution assets. real-time electricity- automatically evaluation, wide-area consumption gather data from a flexible system Automated and protection and monitoring system energy metering that can handle Congestion Computerized and advanced devices diverse generation management substations metering data- management system
Due to the break up of traditional vertically integrated utilities that allowed retailers and other power generators onto the grid, There is a need for an integrated, flexible system to manage the changes in both supply and demand
Advanced transmission operations (ATO) ATO includes real-time simulation, advanced accident evaluation, wide-area protection and congestion management. It can decrease the blackout risk of large-scale grids and connect intermittent power supply onto the grid. Wide Area Management System (WAMS) – Integrated system that monitors and controls elements of the electrical power grid to ensure availability and improve reliability and efficiency of the network
Advanced distribution operations (ADO) ADO will adopt the visible monitoring of the distribution assets. ADO can be self healing based on Distribution Fast Simulation and Modelling (DFSM). While the primary grid is shut down, the distributed power generation will supply power to key account.
A Digital Substation is one that is automated and computerized, providing greater transparency, higher reliability and efficiency of operations.
Advanced metering infrastructure (AMI) AMI includes intelligent metering, real-time electricity-consumption monitoring system and advanced metering data-management system. Advanced Metering Infrastructure (AMI) measures, collects, stores and analyzes utility usage, such as electricity, gas or water usage; is a broader concept than AMR-IP based solution.
IPBased Automatic Meter Reading (AMRIP) Solutions that automatically gather data from energy metering devices and transmit to a central processing facility where billing is handled and consumption patterns are analyzed Real-Time
Asia Pacific Clean Tech Handbook 259 of 348 26-Apr-10 Information Processing. They enable real time communication between core nodes in the electric network, including customer premise, and allow better management of demand, improved reliability and flexibility of the network.
6.8.4 China
Market Size & Growth On May 21, 2009, China has announced a framework for Smart Grid deployment with investment that could reach Rmb1tn over the next 10 years, with around Rmb200bn for State Grid in the coming five years from 2010-14. Smart metering (AMR) has already kicked off with an Rmb80bn budget for the next five years, with Heilongjiang being a trial province. The smart grid should improve transmission and distribution efficiency under State Grid’s strong network and facilitate renewable-energy expansion.
Drivers & Constraints As part of its current 5-year plan, China is building a Wide Area Monitoring system (WAMS) and by 2012 plans to have Phasor Measurment Unit (PMU) sensors at all generators of 300 MW and above, and all substations of 500 kilovolts and above.
Power generated from and solar and wind sources are intermittent and will require a more advanced power-grid system. Under China’s latest renewable-energy plan, wind power capacity and solar energy capacity will reach 100GW and 30GW respectively by 2020, which will make a combined 8% of total capacity by 2020 and require and active system to manage potential imbalances.
Market Players & Competition Key players that should benefit from the Smart Grid investment in China include:
• Wasion <3393.HK> Wasion is a leader in China’s electronic-power-meter market, with a leading market share in the electronic power meters, single-phase electronic power meters and in data-collection terminals and power-management system. It also sells water, gas and heat meters. The major customers are State Grid Corporation of China (SGCC) and China Southern Power Grid (CSG). These core state-owned enterprises are closely related to national energy security and the economy. They are responsible for building and operating power grids to provide a secure and reliable power supply. Wasion also acquired water, gas and heat-meter companies, and is positioning itself as an integrated meter and data-collection system provider. The company is expected to benefit from the governments plan to invest in smart grid technology. For a detailed company profile, see Appendix A.
• Sieyuan Electric <002028.SZ> Sieyuan Electric Co., Ltd. is a China-based company primarily engaged in research, development, manufacture and sale of power transmission, distribution and monitoring equipment. The Company provides protection devices for power automation, high-voltage switches, high-voltage transducers, capacitors, reactors, power electronics products and power controlling products, among others. It distributes its products principally in domestic market. For a detailed company profile, see Appendix A.
Asia Pacific Clean Tech Handbook 260 of 348 26-Apr-10 • JiangSu YongDing <600105.SS> JiangSu YongDing Company Limited is principally engaged in the manufacture and sale of optical cables, electric cables and communication equipment. The Company primarily provides layer-stranding cables, central beam tube cables, ribbon optical fiber cables, power optical cables and soft cables, among others. The Company primarily distributes its products mainly in China’s domestic market.
• NARI Technology Development <600406.SS> NARI Technology Development Limited Company is principally engaged in the development, manufacture and sale of software and hardware products serving the power industry, as well as the provision of system integration services. The Company mainly offers products of power grid dispatching automation, integrated substation automation, rural power network automation, industrial process control automation, rail transportation automation, protection automation, electricity market operating system and distribution automation. For a detailed company profile, see Appendix A.
• Guodian Nanjing Automation <600268.SS> Guodian Nanjing Automation Co. is principally engaged in the development and production of power automation equipment. The Company's major products include protection and automation equipment for power grids and power plants, water conservancy and hydropower protection equipment and industrial automation protection equipment. Through its four branches, the Company provides solutions for digital substations, power grid relay protection systems, substation automation systems, power grid automation systems, digital power plants, energy-saving and emission-reduction projects, water treatment, hydropower station integrated automation systems, water conservancy automation, industrial automation, rail transportation automation and information technology, among others. The Company also offers intelligent electric equipment, photoelectric mutual inductors and high/low voltage distribution series.
• XJ Electric <000400.SZ> XJ Electric Co., Ltd is a China-based company principally engaged in research, development, manufacture and sale of automation, protection and controlling products for electric power systems. The Company provides electric network scheduling automation equipment, electric distribution network automation equipment, substation automation equipment, power station automation equipment, railway power supplying automation equipment, network security and stabilization controlling equipment, power management information systems, technology supporting systems for power market, relay protection and automation controlling equipment, relays, electronic measuring instruments, medium-voltage switches and switch cabinets, as well as transformers and combined substations. It distributes its products primarily in domestic market. For a detailed company profile, see Appendix A.
• Rongxin Power <002123.SZ> Rongxin Power Electronic Co., Ltd. is primarily engaged in the design and manufacture of energy-saving and high-power electric and electronic equipment. The Company's offerings are static var compensators (SVCs), smart gas emission devices (MABZs), power filters, high-voltage frequency converters (HVCs), variable frequency starters (VFSs) and static var generators (SVGs). The Company distributes its products within the domestic market and to overseas markets.
Asia Pacific Clean Tech Handbook 261 of 348 26-Apr-10 • Dongfang Electronic <000682SZ> Dongfang Electronics Co.,Ltd, formerly Yantai Dongfang Electronics Information Industry Co., Ltd., is principally engaged in the development, production and distribution of electrical and industrial automation controlling systems. The Company primarily provides electricity dispatch automation systems, power protection and transformation integrated automation systems, power distribution automation systems, information management systems, electricity bill measurement systems, traction power supplying automation systems of electric railways, as well as cable and wire products.
• Zhuzhou CSR Times Electric Co Ltd <3898.HK> is engaged in the sale and manufacture of train-borne electrical systems and electrical components. The Company is also engaged in the manufacture and sale of electrical systems and components relating to locomotive and rolling stock. The Company supplies a range of on-board electrical systems, including train power converters, auxiliary power supply equipment and control systems, train operation safety equipment and electrical control systems for large railway maintenance vehicles. The Company also produces electrical components, including power semiconductor devices, sensors and related products and other products for its own raw material requirements, and to sell to third parties.
6.8.5 Japan
Market Size & Growth The Japanese government and companies are making a renewed push into smart grid technology, in a bid to catch up with US. While projects in Japan are still in R&D stage, Japanese companies have started to target the US market, with a project in New Mexico.
Asia Pacific Clean Tech Handbook 262 of 348 26-Apr-10 Drivers & Constraints The government decided to launch a verification test for the next generation transmission network - the smart grid in 2009. Through the test, Japan aims to establish technology for securing power system stability in preparation for the massive introduction of new energy sources such as photovoltaic power. The verification test will be carried out on an isolated island in cooperation with electric utilities in order to determine whether the smart grid can be introduced to the power system in Japan.
Public Sector NEDO has started four microgrid demonstration projects at Aomori, Aichi, Miyagi and Kyoto Prefectures under its Regional Power Grid with Renewable Energy Resources Project in 2003.
• Aomori Project in Hachinohe. The project includes PV and biomass, are used to supply electricity and heat. The microgrid serves seven City of Hachinohe buildings. These facilities are interconnected through a 6-kV, 5.4-km duplicate distribution line, with the whole system connected to the commercial grid at a single PCC.
• Aichi Project near the Central Japan Airport. This project supplies a Tokoname City office building and a sewage plant via a private distribution line. Its main feature is a combination of fuel cells supplied by energy from biogas, wood waste and plastic bottles.
• Kyoto Project at Kyotango. This project called the Kyoto Eco Energy Project is run by the municipal government of Kyotango City. An energy control center communicates with the DERs by internet protocol over the legacy telecom network to balance demand and supply, and energy is fed into the legacy distribution system.
• Sendai Advanced Regional Electricity Network Program. NEDO also sponsors a multiple PQR service demonstration which was completed in October 2006. The purpose of this research is to demonstrate multiple simultaneous PQR supply, as may be requested by a range of customers.
Private Sector In addition to the government-sponsored projects, significant private sector research activities are also in progress.
Shimizu Corporation, with the cooperation of the University of Tokyo, is developing a microgrid control system using a test microgrid at its research center in Tokyo.
Tokyo Gas also aims to establish distributed energy networks including microgrids within its service territory. Tokyo Gas is developing an integrated Distributed Energy Resources (DER) control system based on simulation studies and experiments at its test facility in Yokohama.
In addition, Japanese firms, including Toshiba, Kyocera, Shimizu, Tokyo Gas Co., and MHI, will spend $33.4 million on a smart grid project in Los Alamos and Albuquerque, New Mexico. Toshiba says it will install a 1-megawatt storage battery at the Los Alamos site, while Kyocera and Sharp will test smart home, energy management and load control technology. The Yomiuri
Asia Pacific Clean Tech Handbook 263 of 348 26-Apr-10 Shimbun reported that METI will try to get the International electrotechnical Commission to adopt 26 Japanese standards to serve as global standards for the smart grid.
Market Players & Competition • Osaki Electric Co <6644.T> operates in three business segments. The Measurement and Control Equipment segment manufactures and sells electric meters, current limiters, monitor and control equipment, time switches, optical-communications-related equipment, automatic meter reading (AMR) systems and equipment, switchboards and distribution switchboards. For a detailed company profile, see Appendix A.
• Kikusui Electronics
• Takaoka Electric Manufacturing <6621.T> operates in two business segments. The Electric Equipment Materials segment is engaged in the manufacture, sale and repair of power transformers for electricity distribution and receiving, pole transformers, terrestrial transformers, reactors, switches, electric supervision and control systems and environmental systems,
Asia Pacific Clean Tech Handbook 264 of 348 26-Apr-10 6.8.6 South Korea
Market Size & Growth South Korea hopes to become the world's first country with a nationwide smart grid by 2030. It has poured KRW35 bn (USD 28.2 m) into smart grid research and development every year since 2005, with over KRW250 bn (USD 201m) to be used by 2012.
In a further statement in January 2010 by the Ministry of Knowledge Economy (MKE), South Korea will spend about 27.5 trillion won ($24bn) by 2030 building smart electricity grids.The private sector is expected to invest 24.8 trillion won, with the government meeting the 2.7 trillion won shortfall.
Drivers & Constraints Korea's MKE expects the nationwide smart grid to reduce the country's power consumption by 3%. By transmitting electricity to consumers during non-peak hours, Korean utilities are expected to reduce greenhouse gas emissions by 41m tonnes and cut fossil fuel imports by USD 10bn. Consumers will also benefit by enjoying an average 15% decrease in their electricity bills.
South Korea has begun construction of its first smart grid pilot project on Jeju Island. The project, scheduled to be completed in 2013, will benefit 6,000 households on the resort island. The Jeju system will have facilities to allow the full use of electric cars, a network to harness clean energy, and electric services and grids that can enhance energy conservation. AMRs will also tell users when electricity prices are cheapest during the day so they can recharge home appliances and cars at less cost. The government said it will provide KRW58 bn (USD 46.5 m), or roughly half of the construction cost, with the rest coming from the private sector.
Market Players & Competition • LS Industrial Systems <010120.KS> offers power transmission and distribution equipment, automation and control systems, and industrial equipment and systems. The Company's power transmission and distribution equipment includes low-, medium- and high-voltage equipment, measuring and protection equipment, switchgears and transformers. Its automation and control systems consist of programmable logic controller (PLC) products, inverters, automation solutions and intelligent transportation systems (ITSs).
• NURI Telecom
6.8.7 Taiwan
Market Size & Growth Taiwan's biggest power company, telecoms operator and IT firms are designing metering and communication systems to link air conditioners and lighting systems with computers and mobile phones.
Asia Pacific Clean Tech Handbook 265 of 348 26-Apr-10 According to the government's Industrial Technology Research Institute, more than five million smart meters will be installed at a cost of NT$50bn ($1.5bn), over the next 5 years.
Drivers & Constraints Taiwan is putting in place a smart meter policy to build up its domestic market and target the international smart metering market, estimated to be 30 million meters, over the next 30 years.
Market Players & Competition
Manufacturing Many of Taiwan’s electronic companies have targeted smart grid and include:
• Fortune Electric Co., Ltd <1519.TW> is engaged in manufacture and sale of electrical equipment. The Company provides transformers, electric switchboards, distributor devices and other products. The Company also involves in provision of contract engineering services. It distributes its products in domestic and overseas markets.
• Allis Electric Corp. <1514.TW> is principally engaged in manufacturing power distribution and switching components and equipment. The Company provides its products under four categories: switchboards, such as high and low voltage switchboards, motor control centers and switch boxes; transformers, including reactors, potential transformers and current transformers; industrial, communication and electronic switches, such as chargers, rectifiers, un-interruptible power supply systems, switchable direct current power supply, as well as power transmission and distribution apparatus, such as oil switch, vacuum switches and others.
• Luxe Co., Ltd. <1529.TW> is a Taiwan-based company engaged in design, manufacture and installation of switchboards and other electrical appliances. The Company provides switchboards, including high voltage and low voltage switchboards, motor control centers, relays-meters, generator parallel control panels and switchboards for ships, among others; transformers, including low voltage transformers, outdoor transformers, current transformers and voltage transformers; electrical appliances, including breakers, cutouts, resistors and high voltage direct current power supplies, as well as monitoring network products such as remote terminal units (RTUs), supervisory control and data acquisition systems (SCADAs) and management information systems (MISs). The Company also involves in construction and installation of electrical engineering projects, such as wind power generation projects, electric power substation projects and turnkey projects of thermal and electric power cogeneration
Utility • Taiwan Power, the island's utility, will launch a small-scale research study of less than 100 homes, which will be rapidly expanded to tens of thousands of homes in the next two to three years.
Asia Pacific Clean Tech Handbook 266 of 348 26-Apr-10 6.8.8 India
Market Size & Growth North Delhi Power Limited (NDPL) is building a smart grid in India with GE Energy’s PowerOn Outage Management System.
Drivers & Constraints There is no government mandate to invest in Smart Grid Technology in India, with the major push from private sector projects. At present NDPL is the leading utility in the smart grid, with its project with GE Energy.
Market Players & Competition
Utilities • North Delhi Power Ltd
6.8.9 Singapore
Market Size & Growth Singapore has a small market and is positioning itself as a regional hubfor companies to set up a test bed and target larger markets across the region.
Drivers & Constraints Singapore wants to set itself up as a Clean Technology Hub and test bed for Asia and has targeted Smart Grid, as a key sector for investment. It has launched a pilot scheme via the EMA.
Market Players & Competition • The Energy Market Authority (EMA) has initiated the Electricity Vending System (EVS) pilot, where selected households can monitor their real-time electricity consumption using smart meters. The pilot program involves 1,000 households in the Marine Parade and West Coast areas will run till December. Through the EVS, participating users can also select electricity packages from a retailer of their choice. 6.8.10 Indonesia
Market Size & Growth The Indonesian Utility market is essentially dominated by one large government vertically integrated utility, Perusahaan Listrik Negara (PLN) and thus any smart grid technology would need to be driven by PLN.
Drivers & Constraints There are no investment plans for the Smart Grid in Indonesia.
Market Players & Competition • PLN. At present there does not appear to be any smart grid investment planned by PLN
Asia Pacific Clean Tech Handbook 267 of 348 26-Apr-10 6.8.11 Malaysia
Market Size & Growth The Malaysian Utility market is essentially dominated by one large government vertically integrated utility, Tenaga Nasional Berhad on the peninsula and Sabah Electricity for Sabah State and Sarawak Electricity Supply Corporation for Sarawak State. These utilities will be responsible for driving any smart grid technology upgrades.
Drivers & Constraints There are no investment plans for the Smart Grid in Malaysia. CIRED Malaysia, Malaysian National Committee of CIGRE and IEE Power & Energy Society have raised awareness of the Smart Grid in Malaysia.
Market Players & Competition • Malaysian Resources Corporation Berhad (MRCB) has signed an MoU with Cisco and Datacraft to provide smart grid and real estate technology to its new Kuala Lumpur developments
6.8.12 Philippines
Market Size & Growth The Philippines Utility market is essentially dominated by a few large government vertically integrated utilities, namely: National Power Corporation, MERALCO and National Grid Corporation of the Philippines. These utilities will be responsible for driving any smart grid technology upgrades.
Drivers & Constraints There are no investment plans for the Smart Grid in Philippines. However, a number of the utilities, notably PNOC and Meralco are investigating smart grid technologies with Kepco and Siemans, respectively.
Market Players & Competition
Utilities • Philippine National Oil Company. Kepco is planning to incorporate smart grid technology in expanding in the Philippine wind and hydro power plant projects. Kepco has partnered with state-run Philippine National Oil Company-Renewable Corp. for the investment opportunities in the renewable energy.
• Manila Electric Co. (Meralco), the largest power distributor in the Philippines, is seeking ways to improve operational performance. Meralco president and CEO Jose de Jesus said that Siemens’ smart grid solution would allow for improved performance at the utility.
Asia Pacific Clean Tech Handbook 268 of 348 26-Apr-10 6.8.13 Thailand
Market Size & Growth The Thai Utility market is essentially dominated by a few large government vertically integrated utilities, namely: Electricity Generating Authority of Thailand (EGAT), Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA). These utilities will be responsible for driving any smart grid technology upgrades.
Drivers & Constraints There are no investment plans for the Smart Grid in Thailand.
Market Players & Competition There are no companies identified in Thailand in this sector.
6.8.14 Australia
Market Size & Growth The Australian Utility Market is split into 3 markets: the National Electricity Market (NEM); the Wholesale Electricity Market (WEM) for Western Australia; and the Darwin and Katherine Interconnected System (DKIS) servicing the Northern Territory.
• NEM was established by the disaggregation of the government vertically integrated system and supplies electricity to 6 states: ACT, NSW, Queenland, Victoria, South Australia and Tasmania and accounts for around 200 GWh per year, over 90% of the total power generation
• WEM was established by the restructuring of Western Power Corporation, into four corporations: Synergy; Horizon Power; Verve Energy and Western Power and accounts for around 16.5 GWh per year.
• DKIS is dominated by the government owned Power and Water corporations and accounts for less than 2 GWh per year
Drivers & Constraints The key driver for smart grid technology is the Renewable Energy Target (RET), which will require utilities to generate 20% of its power from Renewable Energy. In order for utilities to manage this potentially huge change in supply and demand, a smart grid will need to help manage these imbalances.
Government Project The Australian Government has committed to investing $100m in smart grids. In October 2009, it asked for proposals to initiate a study into the technology. The study is expected to increase customer awareness and engagement in energy usage and establish distributed demand management and distributed generation management. Within Australia the adoption of smart grids is hindered by a lack of service level obligations on electricity distribution businesses to connect distributed generation devices in a timely fashion. Submissions from industry consortia
Asia Pacific Clean Tech Handbook 269 of 348 26-Apr-10 will be assessed by an independent panel and the successful consortium announced by Government in 2010.
State Projects In addition, there are state projects including:
• Victoria. Victoria's smart grid plan, as announced by energy and resources Minister Peter Batchelor in 2009, will give 2.5 million Victorians the ability to monitor their own energy use and allow utilities to read, connect or disconnect meters remotely and respond faster to power outages. UED and Jemena are rolling out smart meters, with a further three utilities expected to roll out similar technologies.
• New South Wales. The University of Sydney and Energy Australia have signed an agreement on 26 May 2009 a $5 million partnership to lead smart grid development in Australia. The NSW Government launched a Smart Village in Newington in 2009, where appliances can be switched on and off remotely using an iPhone, people can get around on plug in electric scooters and energy costs and carbon emissions are graphed in near real-time.
• Western Australia. Western Power, the Smart Grid-Advanced Meter Infrastructure pilot itself forms part of the federal government’s A$73.5 million Perth Solar City project.
Market Players & Competition • United Energy Distribution (UED) Victorian power utilities UED and Jemena have selected Silver Spring Networks to roll out smart meters to over a million Victorian homes in 2009. UED provides power to 660,000 people in South-East Melbourne and on the Mornington Peninsula.
• Jemena is also part of the smart meter roll out project .Jemena serves 320,000 more in North and Inner-West Melbourne.
• Country Energy has built an Intelligent Network (IN) Demonstration Center to showcase the benefits of a smart grid through real examples such as energy storage and vehicle to grid.
• CSIRO. The Intelligent Grid Research Program is an Australian collaboration between the CSIRO and five universities investigating technologies and practices to make our electricity networks smart, greener and more efficient.
6.8.15 New Zealand
Market Size & Growth The New Zealand electricity market was deregulated in 1996, under the formal Electricity Rules and Regulations and is overseen by the market regulator, the Electricity Commission.
There are 5 generators in New Zealand: Meridian, Genesis, Mighty River Power, Contact, and TrustPower and they account for about 95% of New Zealand’s electricity.
Asia Pacific Clean Tech Handbook 270 of 348 26-Apr-10 Ther are 12 retailers in New Zealand: Bay of Plenty Electricity, Bosco Connect, Contact Energy, Energy Direct NZ, Genesis Energy, King Country Energy, Mercury Energy, Meridian Energy, Nova Energy, Powershop, Simply Energy, and Trust Power.
Drivers & Constraints The key driver for the smart grid upgrade is the 90% renewable energy target by 2025, as part of its Energy Plan in 2007.
Market Players & Competition • GE Energy announced in July 2009 that the first phase of an advanced smart grid system has been implemented in New Zealand. GE is working with Orion New Zealand Limited, an electricity distribution network supplying 190,000 homes and businesses in the country, on the project
• Meridian Energy
6.8.16 Summary of Companies involved in Smart Grid Code Company Name Market Cap (M PE Country Segment Dollars) Ratio
NARI Technology Machinery & 600406.SS Development Ltd Co $2,153.1 69.4 China Engineering Guodian Nanjing Electrical & 600268.SS Automation Co Ltd $735.2 56.2 China Electronics Utilities-Electrical & 000400.SZ XJ Electric Co Ltd $1,501.3 78.7 China Gas Rongxin Power Machinery & 002123.SZ Electronic Co Ltd $1,379.3 48.6 China Engineering Electronic Dongfang Components & 000682.SZ Electronics Co Ltd $828.3 312.8 China Instruments Electrical & 3393.HK Wasion Group Ltd $721.1 16.2 Hong Kong Electronics Jiangsu Yongding Misc. Materials & 600105.SS Co Ltd $497.5 39.4 China Commodities Electronic Sieyuan Electric Co Components & 002028.SZ Ltd $1,969.8 29.2 China Instruments Zhuzhou CSR Times Electric Co Machinery & 3898.HK Ltd $2,017.2 31.6 China Engineering Electronic Osaki Electric Co Components & 6644.T Ltd $354.5 53.7 Japan Instruments Takaoka Electric Electrical & 6621.T Mfg Co Ltd $375.1 N/A Japan Electronics
Asia Pacific Clean Tech Handbook 271 of 348 26-Apr-10 LS INDUSTRIAL Electrical & 010120.KS SYSTEMS CO LTD $2,141.3 13.9 South Korea Electronics Fortune Electric Co Electrical & 1519.TW Ltd $217.9 13.2 Taiwan Electronics Electrical & 1514.TW Allis Electric Co Ltd $77.7 N/A Taiwan Electronics Electronic Components & 1529.TW Luxe Co Ltd $24.6 N/A Taiwan Instruments Source: Thomson Reuters
6.9 Carbon Capture and Storage 6.9.1 Background With coal still as the primary source of fossil fuel for power generation, with over 70% generation for China and Australia and accounting for 40% of the total carbon emitted, Carbon Dioxide Capture and Storage (CCS) is seen as the best short term way to retrofit existing coal fired power stations to store and capture this large and growing source for carbon dioxide.
Based on an IEA Study, Asia Pacific is expected to account for the majority of CSS projects by 2050, with 950 projects in China and India alone.
Australia is trying to position itself as a global leader in CCS and already has 15 projects in Australia. The Coal21 Fund has set aside $1 billion to fund and commercialise CCS by 2015.
For the rest of Asia, there are 2 feasibility projects in Japan and 3 in China. There are also plans for feasibility studies in South Korea and Taiwan, while India is taking a more cautious approach.
6.9.2 Targets & Incentives The IEA study45 on CCS has projected that Asia Pacific will account for a majority of CCS projects by 2050.
45 CCS Deployment Requirements in the IEA BLUE Map Scenario
Asia Pacific Clean Tech Handbook 272 of 348 26-Apr-10 IEA CCS Project Projections from 2010 to 2050 Region No. Projects No. Projects Additional Additional Total Total in 2020 in 2050 Cost 2010- Cost 2010- investment investment 2020 ($bln) 2050 ($bln) 2010-2020 2010-2050 OECD 7 280 5.9 645 14.1 530 Pacific China & 21 950 7.6 1315 19.0 1170 India Non-OECD 29 1260 9.7 1625 19.8 1765 World Total 100 3400 54 5810 130 5070 Source: IEA CCS Deployment Requirements in IEA BLUE Map Scenario
Power generation is expected to account for 55% of the worldwide total for CCS by 2050, of which coal fired power stations will account for 29GW (90%) n 2020 and 734GW (64%) of the total power generation.
IEA CCS Projects in Power Generation Region No. Projects CCS Captured No. Projects CCS Captured in 2020 Capacity in 2020 (Mt in 2050 Capacity in 2050 (Mt
2020 (GW) CO2/year) 2050 (GW) CO2/year) OECD 2 1.3 9 150 85 510 Pacific China & 6 2.5 13 465 365 1785 India Non-OECD 4 1.6 6 610 400 1725 World Total 38 22 131 1670 1140 5510 Source: IEA CCS Deployment Requirements in IEA BLUE Map Scenario
A country review of CCS shows that Australia the regional leader in this sector, with projects in China and Japan.
• China has four feasibility projects • Japan formed a consortium of 24 companies to investigate feasibility of CCS. 3 projects are underway
• South Korea working on R&D projects to reduce cost to under $30/tCO2 • India is still very cautious about CCS and has not started on a pilot scheme • Indonesia has undertaken a feasibility study to assess the potential of CSS • Australia has 15 projects funded by various institutions from COAL21 and CSIRO •
Asia Pacific Clean Tech Handbook 273 of 348 26-Apr-10 Current CCS Inventory and Potential in Asia Pacific Country Projects Potential China 4 Japan 3 150 billion tonnes South Korea 0 Taiwan 1 by 2012 50MW by 2025
India 0 3.7-4.6 Gt CO2 Indonesia 0 Australia 15 Source: Coal21, CSIRO, Company Websites
Additional Cost of CCS Country Additional Cost of CCS Comment
$/tCO2 IPCC $15-75 Japan $66 South Korea $55 Australia $35 Source: IPCC, CSIRO
Asia Pacific Clean Tech Handbook 274 of 348 26-Apr-10 6.9.3 CCS Process
CCS is a process consisting of the separation of CO2 from industrial and energy-related sources, transport to a storage location and long-term isolation from the atmosphere. Figure 6.23 – CCS
Feedstock Combustion Separation Storage
Post
Fossil Fuel Combustion CO2 Separation Depleted Oil
Pre
Fossil Fuel Gasification Reformer H2 and CO2 Separation Deep Saline
Combustion Use of CO Oxyfue 2
Air Separation
Industrial
Raw Material Industrial Process CO2 Separation CO2 in ECBM
Source:
There are three main types of CO2 capture systems:
• Post-combustion capture of CO2 in power plants is economically feasible under specific
conditions. It is used to capture CO2 from part of the flue gases from a number of existing
power plants. Separation of CO2 in the natural gas processing industry, which uses similar technology, operates in a mature market.
• Pre-combustion is used in fertilizer manufacturing and in hydrogen production. The initial fuel conversion steps of pre-combustion are more elaborate and costly; the higher
concentrations of CO2 in the gas stream and the higher pressure make the separation easier.
• Oxyfuel combustion is in the demonstration phase and uses high purity oxygen. This results
in high CO2 concentrations in the gas stream and, hence, in easier separation of CO2 and in increased energy requirements in the separation of oxygen from air.
Storage of CO2 uses many of the technologies used in the oil and gas business. There are four main types of storage:
• Injection of CO2 in depleted oil and gas reserves
• Injection of CO2 in saline formations
• The combination of CO2 storage with Enhanced Oil Recovery (EOR)
Asia Pacific Clean Tech Handbook 275 of 348 26-Apr-10 • The combination of CO2 storage with Enhanced Coal Bed Methane Recovery (ECBM)
6.9.4 China
Market Size & Growth Coal still accounts for around 70-80% of China’s power generation. While, China has set 20% renewable energy target by 2020, coal will still be the primary source of power generation and CCS is seen as a key technology for reducing the carbon emissions generated from coal fired power stations.
Drivers & Constraints At present, there are a only a few feasibility projects underway to test the technical and economic viability of CCS.
The Ministry of Science & Technology (MOST) has been working the Guide for CCS science and technology development development, which was expected to be issued in the mid 2009.
Market Players & Competition The feasibility projects in China include:
• PetroChina
Oil Field from 2006, with the injection of CO2 into 10 wells. The investment was RMB200 million
• China Huaneng Group
(PCC) project in Beijing Thermal Power plant with 3000 t CO2/year. CSIRO and the Thermal Power Research Institute (TPRI) are partners in the project.
• GreenGen Limited
• UK-China Near Zero Emissions Coal Project (NZEC) Project set to be operational by 2014.
6.9.5 Japan
Market Size & Growth Japan CCS said in a statement it aims to conduct feasibility studies for the government in an attempt toward realizing Japan's goal to capture and store 100 million tonnes of CO2 per year from 2020. METI official said there was potential to store 150 billion tonnes of CO2 in Japan. Feasibility projects in Japan include:
• Feasibility Study on a Total System from Electric Power Generation to CO2 Storage, as a part of the “Innovative Zero Emission Coal Gasification Electric Power Project” funded by NEDO
• Development of Assessment Technologies for a Deep Aquifer appropriate for Demonstration as a part of Research and Development of Underground Storage Technology for Carbon Dioxide, funded by MET
Asia Pacific Clean Tech Handbook 276 of 348 26-Apr-10 • Nagoaka Project funded by Research Institute of Innovative Technology for the Earth (RITE).
The project injected 10,200 tCO2 into an aquifer.
Drivers & Constraints The constraints for Japan are the limited suitable sites are far away from large emission sources and projected cost for CCS in Japan ($66/tCO2) are much higher than IPCC estimates.
Market Players & Competition • CCS Co Limited
6.9.6 South Korea
Market Size & Growth
There is limited storage capacity in South Korea, which is estimated to be 0.5 GtCO2
Drivers & Constraints Korean government is actively involved in international cooperation and development of technologies. However, South Korea has limited storage capability and the costs are still too high and need to drive capture cost down from $55/tCO2 to less than $30$tCO2
Market Players & Competition No companies identified
6.9.7 Taiwan
Market Size & Growth Unlike Japan and South Korea, Taiwan seems to have great CCS potential because thick Tertiary to Quaternary sediments are distributed all along west coast.
Drivers & Constraints
A pilot scale demonstration for CO2 geologic sequestration in Taiwan is scheduled to start in 2012, with commercialization of a 50MW planned for 2025.
Market Players & Competition There are no companies identified in CCS in Taiwan
6.9.8 India
Market Size & Growth Coal will be the main fuel for power generation for the next 20 to 30 years in India and is expected to account for over 60% of the total power generation mix and rising to around 950 GWh by 2030 and over 140 GW in capacity.
Preliminary studies indicate that potential storage sites are located in the Gangetic, Brahmaputra and Indus river plains, and along the immediate offshore regions on the Arabian Sea and Bay of Bengal.
Asia Pacific Clean Tech Handbook 277 of 348 26-Apr-10 46 An assessment of potential for geological storage in India suggests that CO2 storage in coal seams is likely to be constrained since these coal reserves can be easily mined and used as fuel. Taking this into consideration, the calculated storage potential countrywide was found to be more of the order of 345 Mt CO2 in the major coalfields, where none have the capacity to store more than 100 Mt CO2, and only eight of the fields can store more than 10 Mt CO2. For oil and gas reservoirs, the authors calculated the total storage capacity to be between 3.7 and 4.6 Gt CO2.
Drivers & Constraints While coal will be the main fuel for power, India is still very cautious about CCS and has not started on a pilot scheme
Market Players & Competition • Australia's EESTech
6.9.9 Singapore
Market Size & Growth There are no planned CCS projects in Singapore.
Drivers & Constraints Singapore does not have any plans for CCS.
Market Players & Competition No companies involved in CCS in Singapore.
6.9.10 Indonesia
Market Size & Growth Indonesia has a high potential for CSS, with large sedimentary basins located in the archipelago. A feasibility study was undertaken in 2007 by Shell, but no further plans have been put in place to develop CCS project further.
Drivers & Constraints A feasibility study was undertaken in 2007 by Shell to assess the potential of CCS in Indonesia.
Market Players & Competition There are currently no demonstration projects in Indonesia.
46 2008 IEAGHG Assessment
Asia Pacific Clean Tech Handbook 278 of 348 26-Apr-10 6.9.11 Malaysia
Market Size & Growth There are no planned CCS projects in Malaysia.
Drivers & Constraints Malaysia does not have any plans for CCS in its Energy Plan.
Market Players & Competition No companies involved in CCS in Malaysia.
6.9.12 Philippines
Market Size & Growth The Philippines has a high potential for CSS, with large sedimentary basins located in the archipelago.
Drivers & Constraints There are currently no plans for CCS, as part of the RE Act or any targets or investments in place for demonstration projects.
Market Players & Competition There are no companies involved in CCS in Philippines.
6.9.13 Thailand
Market Size & Growth The market potential for CCS in Thailand has not been assessed.
Drivers & Constraints There are currently no plans for CCS, as part of the Energy Master Plan or investments in place for demonstration projects. However, CCS is being considered, as an option to reduce Carbon Emissions.
Market Players & Competition There are currently no companies involved in CCS in Thailand.
6.9.14 Australia
Market Size & Growth Australia is a global leader in CCS technology and the government and coal industry are investing over $1 billion and there are already 15 projects sponsored by various institutions, such as CSIRO, Coal21 and CO2CRC, as highlighted in the Table below.
In addition, the storage potential for CCS in Australia is the largest in Asia Pacific at 700 GtCO2
Asia Pacific Clean Tech Handbook 279 of 348 26-Apr-10 Summary of existing CCS projects in Australia Project Capacity Timeframe
ZeroGen Project I 120MW, 75% capture 2012
ZeroGen Project II 450MW, 90% capture 2017
Coolimba 2x200MW 2012
Otway Project 100,000 tonnes 2008
Mulgrave
Loy Yang 1,000 tonnes per year
Hazelwood 10,000–20,000 tonnes per year
Munmorah 100,000 tonnes per year 2013
Tarong PCC Project. 1,500 tonnes per year
Callide Oxyfuel Project 2011
Gorgon 3.3 million tonnes per year 2015
Moomba 2010
HRL IDGCC Project 400MW
Latrobe Valley
FuturGas Project 2016
Source: CSIRO, Company Reports
A number of domestic and international CCS initiatives are currently underway, including:
Coal21 Program The Australian Coal Association’s Coal21 Program – a partnership between the coal and electricity industries, governments, researchers and unions to investigate a variety of technologies, including CCS to reduce or eliminate greenhouse gas emissions from coal production and coal-fired power generation.
• ZeroGen Project. The project will develop a demonstration-scale 120 MW IGCC power plant with CCS. The facility is due to begin operations in late 2012 and will capture up to 75% of
Asia Pacific Clean Tech Handbook 280 of 348 26-Apr-10 CO2. Some of the CO2 will be transported by road tankers for partial sequestration in deep underground reservoirs in the Northern Denison Trough, approximately 220km west of the plant. To facilitate more rapid uptake of the technology at commercial scale, ZeroGen will concurrently develop a large-scale 450 MW IGCC power plant with CCS. Due for deployment
in 2017, the facility is expected to capture up to 90% of CO2. Its location will be at a site in Queensland to be determined by a feasibility study. ZeroGen Pty Ltd is currently supported by the Queensland Government and the coal industry’s COAL21 Fund.
• The NSW Government has undertaken a series of studies to assess the potential for
geosequestration of CO2 in deep saline formations and coal seams in NSW. Both storage assessment initiatives are financially supported under the Australian coal industry’s COAL21 Fund.
Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) The Global Carbon Capture and Storage Initiative, National Low Emissions Coal Initiative (NLECI) and Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC), to provide a forum for international collaboration and develop a technology roadmap for both capture and geological storage of carbon dioxide.
• Coolimba Power Project. Construction of Aviva Corporation Ltd’s 2x200MW coal-fired base- load power stations is proposed to be completed by 2012. The plant will be built ready for
conversion to CO2 capture. Sequestration sites are being sought for the storage with the involvement of CO2CRC and ARC Energy.
• The Otway Project. The CO2CRC Otway Project is Australia’s most advanced CO2 storage project. Launched in April 2008, the project involves the extraction, compression and
transport and storage of 100,000 tonnes of naturally occurring CO2. The CO2 is being stored in a depleted natural gas reservoir two km below the earth’s surface.
• Mulgrave Pre-Combustion Capture Project, Victoria. CO2 emissions will be captured from HRL’s research gasifier in Mulgrave in a pilot-scale capture project by CO2CRC. The capture technologies will be evaluated to identify which are the most cost effective for use in a coal gasification power plant. Partners include CO2CRC and HRL with funding from the Victorian Government.
• Loy Yang. A CSIRO mobile pilot PCC facility has begun operation at Loy Yang and will
capture around 1000 tonnes of CO2 each year. Partners in this project include International Power, Loy Yang Power, CO2CRC, CSIRO and Process Group with funding from the Victorian government.
• Hazelwood. Work is underway on a facility at Hazelwood that will capture and chemically
sequester CO2 at a rate of 10,000 – 20,000 tonnes each year, with capture to commence late 2008. CO2CRC will use that plant to test a range of solvent and process changes. Using two other rigs, CO2CRC will test adsorbent and membrane post-combustion techniques
Asia Pacific Clean Tech Handbook 281 of 348 26-Apr-10 CSIRO Flagship Program • Munmorah Power Station. CSIRO’s Energy Transformed Flagship is working with Delta Electricity to test post-combustion capture at a pilot plant they have built at the Munmorah Power Station. The Flagship’s goal is to provide proof of the post-combustion concept,
evaluation of various CO2 absorbents, assistance in the scale up to demonstration and
commercial plants, and provide the science underpinnings for future policy options for CO2 capture. It is hoped the Munmorah project will provide the foundation for a $150 million post- combustion CCS demonstration project in NSW, planned for operation by 2013, capturing up
to 100,000 tonnes of CO2 each year.
• Tarong PCC Project. CSIRO and Tarong Energy will install a post-combustion capture pilot plant using an amine-based solvent at Tarong Power Station near Kingaroy, Queensland. The
pilot plant will capture 1500 tonnes of CO2 each year over a two-year research program beginning in 2009
The projects will need to prove the viability of the technology by 2011 with the aim of storing between two and five megatons of CO2 per year from coal-fired power plants.
The Flagship projects, jointly funded by the Australian black coal industry, state and federal governments, are part of several initiatives to protect the country's domestic coal industry. Coal is Australia's largest export earner, but mainly exports high quality coal for coking, while it uses low grade coal for its domestic power generation.
The Australian government has announced details of the commercial release of 10 offshore areas designated specifically for the assessment of their carbon storage potential.
The initial release areas are located across five offshore basins adjacent to Victoria, South Australia, Western Australia and the Northern Territory. The assessment areas being released have been identified as having the best potential in terms of geological suitability and current industry needs and are underpinned by technical data from Geoscience Australia.
Regulations and guidelines to support the new legislation are under development and will be finalised in the third quarter of 2009. The acreage release bidding will remain open until two months after the completion of the regulations.
Other CSS Projects in Australia • The Callide Oxyfuel Project will demonstrate CCS using oxyfuel combustion, combined with carbon storage. The Oxyfuel boiler is scheduled to be operational in the Callide A power plant by 2011. The project team is assessing potential carbon storage sites to the west of the
power plant and plans to select the final location. The CO2 will be transported in road tankers. The project is headed by CS Energy Ltd in conjunction with an international team of partners, including IHI Corporation (Japan), J-Power (Japan), Mitsui & Company (Japan) Schlumberger Oilfields Australia and Xstrata Coal.
• Geological storage site assessments, Queensland and New South Wales. The Queensland State Government through the Geological Survey of Queensland has developed, in conjunction with the coal industry and the Commonwealth Government, the Carbon
Asia Pacific Clean Tech Handbook 282 of 348 26-Apr-10 Geostorage Initiative (CGI) to identify and assess potential sites for safe, long-term CO2 storage in Queensland. Mapping work is currently underway for regional assessment of basin storage potential.
• Gorgon CO2 Injection Project. Chevron (operator), Shell and Exxon are planning a major
sequestration project linked to the Gorgon LNG Project. The separated CO2 will be injected
under Barrow Island to a depth of about 2.3km, with injection of 3.3 million tonnes of CO2 per year. A total of 125 million tonnes will be injected over the life of the project. The construction phase is planned to commence in late 2009 and take about five years. A data well has been drilled and a major study of the subsurface is underway.
• Moomba Carbon Storage Project. This project is currently at the early feasibility stage, with the objective of establishing a regional carbon storage hub in the Cooper Basin. The first
phase, will involve the capture of CO2 from existing gas processing facilities and injecting one
million tonnes of CO2 commencing in 2010, to re-pressure oil reservoirs for EOR. Partners in this project include Santos and Origin.
• HRL IDGCC Project, Victoria. A proposed 400MW power generation plant in Victoria will involve integrated drying gasification combined-cycle (IDGCC) using brown coal. Partners include HRL Technology and Harbin.
• Latrobe Valley Post-Combustion Capture Projects, Victoria. These projects involve retrofit
of pilot scale post-combustion CO2 capture plants.
• FuturGas Project, South Australia. Hybrid Energy Australia is researching the development of the carbon dioxide storage component of the FuturGas Project – an energy conversion development involving the gasification of lignite to syngas for the production of synfuels. It is
proposed that the CO2 captured post-gasification will be stored in the Otway Basin to the south of the lignite resources. A feasibility study and an environmental impact study will be completed by 2011. It is hoped the project will become operational by 2016.
Drivers & Constraints Australia is the world’s largest coal exporter and relies on coal, as it primary source of fuel for power generation and has targeted CCS technologies, as a way to reduce its carbon emissions and meet its green house gas targets.
Under the A$4.5 billion Clean Energy Initiative, the Government will provide A$2.4 billion to support investment in large scale integrated CCS projects in Australia. The target is to create 1000 MW of low emission fossil fuel generation. Australia has established the Global Carbon Capture and Storage Institute (GCCSI) with the aim of accelerating the global development and deployment of Carbon Capture and Storage technology.
The Australian Government is contributing up to A$100 million per annum to fund the operations of the GCCSI, which has the mandate is to foster a global portfolio of commercial-scale flagship demonstration projects.
Asia Pacific Clean Tech Handbook 283 of 348 26-Apr-10 In addition, Australia has introduced legislation allowing offshore geological storage and is undertaking a commercial release of offshore exploration areas for greenhouse gas storage assessment.
The Offshore Petroleum and Greenhouse Gas Storage Act, 2006 (which came into effect in November 2008) provides a system of access and property rights for the geological storage of greenhouse gas in offshore waters under Commonwealth jurisdiction. Ten offshore areas have been offered by the Government.
Market Players & Competition Australia is the largest coal exporter in the world and also generates over 70% of its power from coal and has the highest percentage of power generated out of all the developed nations, so has a vested interest in reducing carbon emissions from its existing coal fired power stations. It has a number of government funded pilot schemes in place, in addition to the large potential CCS at the Gorgon Gas Field. Key Players include:
CCS • Mitsubishi Heavy Industries <7011.T> and Mitsubishi Corporation <8058.T> have signed an agreement with Australia's ZeroGen to develop a combined cycle power generation plant integrated with a carbon capture and storage facility.
Clean Coal • White Energy
• Environmental Clean Technologies
• EESTech
Asia Pacific Clean Tech Handbook 284 of 348 26-Apr-10 6.9.15 New Zealand
Market Size & Growth There are no planned CCS projects in New Zealand.
Drivers & Constraints The Ministry of Economic Development (MED) is the lead agency in developing CCS policy for New Zealand. MED has a work programme in development to ensure that CCS remains an option for New Zealand.
• The work program is focused on the near term goal of ensuring that an appropriate legislative and regulatory framework is in place to regulate CCS should it be deployed in New Zealand, and to allow for proactive investment decisions.
• Another early priority of the work programme is to better understand New Zealand's capacity
to actually store CO2 in geological structures. Research is currently underway to assess New Zealand's geological storage options.
Market Players & Competition There are currently no companies involved in CCS in New Zealand.
6.9.16 Summary of Companies Code Company Name Market Cap PE Country Segment (M Dollars) Ratio
WEC.AX White Energy Company Ltd $542.6 N/A Australia Metals - Non Ferrous
Unlisted GreenGen Limited N/A N/A China CCS
Unlisted EESTech N/A N/A Australia CCS
Unlisted CCS Co Limited N/A N/A Japan CCS
Asia Pacific Clean Tech Handbook 285 of 348 26-Apr-10 6.10 Nuclear 6.10.1 Background There are now 439 nuclear reactors in operation around the world in over 30 countries, providing almost 16% of the world’s electricity. However, due to public perception, growth in the sector had slowed in the 1990s. As nuclear power only emits a small amount of greenhouse gases, it is undergoing a revival and is seen as a major source of non fossil fuel power and the only present day source that can provide reliable, cost effective base load power that can offer a viable alternative to coal.
New reactor designs (Generation IV) are in progress, with 6 leading designs recommended by the Generation IV International Forum (GIF). In addition, APR countries are embracing nuclear power generation and lead a new wave of reactor installations, particularly in China and India, but also plans for reactors in Indonesia, Vietnam, Malaysia, and Thailand.
Japan is home to two of the three leading nuclear reactor companies – Westinghouse-Toshiba and GE-Hitachi – and has proposed to boost its share of nuclear power to 44% by 2030.
South Korea has embarked on a large nuclear power generation program through Korea Nuclear Hydro Power (KNHP) and expected to increase generation to 243 billion kWh by 2030.
India is looking to lead the next generation of nuclear reactors with its expertise in thorium fuel, coupled with the largest reserves of thorium globally. While China, also plans to increase it share of nuclear reactors to increase its share of non fossil fuel in its power generation mix.
Asia Pacific Clean Tech Handbook 286 of 348 26-Apr-10 6.10.2 Targets & Incentives
• China - is set to increase its nuclear capacity by six times to 60GW and then a further substantial increase to 160 GW by 2030
• Japan - A METI plan called for an increase in nuclear power generation by a further 30% (13 GW) with the addition of 9 to 12 new nuclear plants.
• South Korea - The government stated that South Korea should develop its nuclear industry into one of the top five in the world, with about 60% of electricity from nuclear by 2035.
• Taiwan - Taiwan has 6 nuclear power stations in operation and considering the addition of another 6 more plants.
• India - expects to have 20GW nuclear capacity by 2020.
Asia Pacific Clean Tech Handbook 287 of 348 26-Apr-10 Total Installed capacity (MW) Country Nuclear Number of Nuclear Proposed electricity reactors in generating Capacity generation, 2007 operation* capacity* MW (billion kWh) MW China 59.3 11 8,587 60,000MW by 2020 Japan 267.0 55 47,577 65,000MW by 2020 South Korea 136.6 20 17,533 26,000MW by 2020 Taiwan 6 5,700 Additional 6 reactors India 15.8 17 3,779 20,000MW by 2020
Singapore 0 0 0 Feasibility Study Indonesia 0 0 0 4,800MW by 2025 Malaysia 0 0 0 0 Philippines 0 0 0 600MW by 2025 Thailand 0 0 0 2,000MW by 2020 Vietnam 0 0 0 4,000MW by 2025 Australia 0 0 0 0 New Zealand 0 0 0 0 Source: WNA, IEA, EIA, Government Publications
6.10.3 Nuclear Process and Supply Chain The nuclear supply chain can be broken several sections. A huge amount of R&D work goes into reactor designs, which is now consolidated into a small number of players who can sell throughout the world. Capital costs of nuclear plants are relatively high by comparison with rival technologies and building on time and on budget is essential. This involves many local subcontractors but there are a number of major international companies involved in this area. The nuclear fuel cycle, from uranium mining to waste disposal, has a number of specialist activities, each of which are carried out by a limited number of companies worldwide. More in the background are a number of technology, equipment and service companies, who provide a range of specialized products and services to all areas of the industry. Finally, there is a group of electricity utilities for whom nuclear plants represent a significant share of their generating capacity.
Asia Pacific Clean Tech Handbook 288 of 348 26-Apr-10 Figure 6.25 – Nuclear Supply Chain
Mining Nuclear Fuel Reactors Construction Operation Disposal
China China CNNC, Local CGNPC, China Uranium SNPTC Providers CPIC, Uranium
Japan JNFL, MNFL Hitachi, JSW, MHI TEPCO, JNFL, MFL Toshiba, MHI KEPCO,
Korea KNFC, KNHP Local KHNP KNFC KAERI Providers
Taiwan Imported Imported Taipower Taipower Taipower
India Uranium Uranium NPCIL L&T, HCC NPCIL, Uranium Corp Corp NTPC Corp
Australia BHP, Rio BHP, Rio Tinto, Tinto
Source: Company Reports, Thomson
Mining Uranium is not scarce, as a resource with over 2 million tonnes mined. Unlike oil, proven reserves exist in stable countries, such as Australia and Canada.
Since 2003, uranium prices have risen sharply, driven by the surge in commodity prices, encouraging a growth in exploration by new uranium companies, adding to the established market participants such as Cameco, Rio Tinto, Areva, BHP Billiton and Kazatomprom. Few of these will ever enter the production phase, but some such as Paladin and Uranium One are already doing so and will participate in a likely production boom over the next few years.
Nuclear Fuel Nuclear fuel is loaded into new nuclear reactors in the form of fuel assemblies. These will stay in the reactor for about 3 years until the reactivity declines to the extent that replacement is warranted. Light Water Reactors (LWRs), comprising 90% of today’s reactors, were traditionally shut down once per year (an “outage”) when one third of the fuel would be replaced, but many reactors today have longer operating cycles, with outages only every 18 or 24 months. After discharge from the reactor, used nuclear fuel is cooled for several years in large ponds of water. Thereafter there are essentially two options – either reprocessing the used fuel, to separate uranium and plutonium which may be re-introduced into the nuclear fuel cycle, or storing the used fuel for longer before sending it to a deep geological repository.
The “front end” of the nuclear fuel cycle comprises the stages up to fuel fabrication, where the fuel assemblies are prepared. The “back end” is the route followed by the used fuel, which can include reprocessed uranium and plutonium re-entering the front end. Uranium production is the
Asia Pacific Clean Tech Handbook 289 of 348 26-Apr-10 starting point of the front end and it goes through stage of conversion and enrichment (at least for LWRs – Pressurised Heavy Water Reactors (PHWRs) run on natural uranium) before fuel fabrication.
Conversion is an intermediate step in the nuclear fuel cycle, where uranium is converted from oxide to fluoride form for the enrichment stage (which requires uranium to be in a gaseous form). It is carried out in a few specialist plants throughout the world. LWRs require the U-235 isotope of uranium to be increased from the natural 0.7% to 3-5%. This is a major, technically complex, step in the cycle and has historically accounted for slightly more of the fuel cost than uranium supply itself.
Fuel fabrication is a specialized service to reactor operators, rather than a homogeneous commodity like uranium, conversion and enrichment. As such, it takes place at a greater number of suppliers worldwide, in many cases national suppliers such as CNNC in China, JNFL in Japan and KNFC in South Korea close to the reactor location.
Reactors Nearly 90% of existing reactors are Light Water Reactors (LWRs) of which there are two main groups, Pressurized Water Reactors (PWRs) and Boiling Water Reactors (BWRs). All of the currently operating 104 US reactors, for example, are of these two types. The most significant alternative design is the pressurised heavy water reactor (PHWR) of which the CANada Deuterium Uranium (CANDU) design is the best known. With one exception, all of the new reactors being offered today fall into these types.
The marketing of new major reactors has today become concentrated in a few major companies: Areva, GE-Hitachi and Westinghouse-Toshiba are the three majors, and are at the centre of the proposals to build new reactors both the United States and United Kingdom. Atomstroyexport of Russia, AECL of Canada and KOPEC of Korea are also competing for major reactor contracts, having established reputations with the nuclear programs in their own countries and the Middle East.
Construction Construction of new nuclear reactors are major civil engineering projects, inline with other capital investment projects in other sectors. A nuclear project can be sub-divided into two parts:
• Nuclear island (accounting for about 60% of the cost); and • Non-nuclear part (the remaining 40%).
Contracts for new nuclear plants are usually divided into the two parts with the major specialist reactor vendors (above) competing for the nuclear island part and the remainder the subject of bids from a wider range of companies. Nuclear plants are thermal generating units, as much as coal-, oil- and gas-fired units, and the non-nuclear part of the plant, largely the turbine generating set and a lot of pipework, is much the same as with these.
The nuclear island requires a significant amount of concrete work for strength and radiation protection and the installation of major components such a reactor pressure vessels and steam generators. These items for the latest reactors require very large steel forgings and more basic
Asia Pacific Clean Tech Handbook 290 of 348 26-Apr-10 components must be of top quality, certified as “nuclear grade”. In terms of the construction process, some of the latest reactor designs allow for a much greater degree of modular construction with standardized major components being brought to the site from factories some distance away. This represents a reaction against the past practice of building “singleton” reactors bit-by-bit onsite, which proved to delay progress and harm project economics.
Estimates of costs of new reactor projects suffer from the lack of experience of these in the Western world since the 1980s. Nevertheless, experience of building in East Asia suggests that the construction phase, from first concrete to connection to the power grid, can be accomplished in 4 years and at all-in cost of $2-3 billion for a 1000 MWe reactor, scaled up for a larger model.
Operators Operators are the domestic utility companies and are a much more fragmented group of companies, when compared with the mining and reactor sector. Companies include TEPCO, Japan’s largest utility and Korea’s KNHP.
Next Generation Reactors (Generation IV) Countries are already working on the next generation of nuclear reactors (GIF – Generation IV) and have short listed 6 new designs. There is currently a race to establish the next standard for the industry, with different countries promoting technologies that will give their own domestic industry a crucial advantage.
Issues with the new generation reactors include the high temperatures and condition required to operate, as the materials do not yet exist to withstand these condition over a long time of at least 5 years.
SFR – Sodium‐Cooled Fast Reactor System The Sodium-Cooled Fast Reactor (SFR) system features a fast-neutron spectrum and a closed fuel cycle for efficient conversion of fertile uranium and management of actinides. A full actinide recycle fuel cycle is envisioned with two options. The SFR system can use existing nuclear waste and thus re-use spent fuel. This technology is the furthest developed and is estimated to be deployable by 2015.
VHTR – Very‐High‐Temperature Reactor System The Very-High-Temperature Reactor (VHTR) system uses a thermal neutron spectrum and a once-through uranium cycle. The VHTR system has coolant outlet temperatures above 1000°C. It is intended to be a high-efficiency system that can supply process heat to a broad spectrum of high temperature and energy-intensive processes. The system may incorporate electricity generation equipment to meet cogeneration needs. The system also has the flexibility to adopt U/Pu fuel cycles and offer enhanced waste minimization. One current drawback is that it requires significant advances in fuel performance and high temperature materials currently not available. Additional R&D will include high-temperature alloys, fiber-reinforced ceramics or composite materials, and zirconium-carbide fuel coatings. The VHTR system is estimated to be deployable by 2020.
Asia Pacific Clean Tech Handbook 291 of 348 26-Apr-10 GFR – Gas‐Cooled Fast Reactor System The Gas-Cooled Fast Reactor (GFR) system features a fast-neutron spectrum and closed fuel cycle for efficient conversion of fertile uranium and management of actinides. The fuel cycle facilities can minimize transportation of nuclear materials and will be based on either advanced aqueous, pyrometallurgical, or other dry processing options. Several fuel forms are being considered for their potential to operate at very high temperatures and to ensure an excellent retention of fission products: composite ceramic fuel, advanced fuel particles, or ceramic clad elements of actinide compounds. Core configurations are being considered based on pin- or plate-based fuel assemblies or prismatic blocks. Given its R&D needs for fuel and recycling technology development, the GFR is not expected to be deployable until 2025.
LFR – Lead‐Cooled Fast Reactor System The Lead-Cooled Fast Reactor (LFR) system features a fast-neutron spectrum and a closed fuel cycle for efficient conversion of fertile uranium and management of actinides. The system uses a lead or lead/bismuth eutectic liquid-metalcooled reactor. The fuel is metal or nitride-based, containing fertile uranium and transuranics. The most advanced of these is the Pb/Bi battery, which employs a small size core with a very long (10–30 year) core life. The reactor module is designed to be factory-fabricated and then transported to the plant site, reducing risk of nuclear proliferation. The reactor is cooled by natural convection and sized between 120–400 MWth, with a reactor outlet coolant temperature of 550°C, possibly ranging up to 800°C, depending upon the success of the materials R&D. The system is specifically designed for distributed generation of electricity and other energy products, including hydrogen and potable water. Given its R&D needs for fuel, materials, and corrosion control, the LFR system is estimated to be deployable by 2025.
SCWR – Supercritical‐Water‐Cooled Reactor System The Supercritical-Water-Cooled Reactor (SCWR) system features two fuel cycle options. Both options use a high-temperature, high-pressure, water-cooled reactor that operates above the thermodynamic critical point of water (22.1 MPa, 374°C) to achieve a thermal efficiency approaching 44%. The fuel cycle for the thermal option is a once-through uranium cycle. The fast- spectrum option uses central fuel cycle facilities based on advanced aqueous processing for actinide recycle. The fast-spectrum option depends upon the materials’ R&D success to support a fast-spectrum reactor. In either option, the reference plant has a 1700-MW power level, an operating pressure of 25 MPa, and a reactor outlet temperature of 550°C. Passive safety features similar to those of the simplified boiling water reactor are incorporated. Owing to the low density of supercritical water, additional moderator is added to thermalize the core in the thermal option. The benefits of the SCWR system are high thermal efficiency and plant simplification. Given its R&D needs in materials compatibility, the SCWR system is estimated to be deployable by 2025.
MSR – Molten Salt Reactor System The Molten Salt Reactor (MSR) differs from other designs in that it uses a molten mixture of liquid sodium, zirconium, and uranium fluorides. The molten salt fuel flows through graphite core channels, producing a thermal spectrum. The heat generated in the molten salt is transferred to a secondary coolant system through an intermediate heat exchanger, and then through another heat exchanger to the power conversion system. This design benefits by allowing the addition of actinide feeds with variable composition by varying the rate of feed addition. There is no need for
Asia Pacific Clean Tech Handbook 292 of 348 26-Apr-10 fuel fabrication. Given its R&D needs for system development, the MSR is estimated to be deployable by 2025.
Liquid Fluoride Thorium Reactor (LFTR) One variant of the MSR technology that is gaining traction is the use of Thorium, as a substitute for Uranium. Thorium can be used within existing reactors and mixed with the existing uranium. Thorium is advantageous, as it is readily available, cheaper, more efficient and does not have harmful waste products, such as plutonium. India is looking at this technology closely, as it is also has one of the largest reserves of Thorium globally.
6.10.4 China
Market Size & Growth China has 11 nuclear power reactors in commercial operation with a further 20 under construction. Based on renewed statements, China is set to increase its nuclear capacity by six times to 60GW and then a further substantial increase to 160 GW by 2030, making it the leader in Nuclear Capacity globally.
Plant Province MWe Reactor Project control Construction start Operation gross model
Lingao Phase II Guangdong 2x1080 CPR- CGNPC 12/05, 5/06 12/10, units 1&2 1000 8/11
Qinshan Phase II Zhejiang 2x650 CNP-600 CNNC 4/06, 1/07 2011, units 3&4 2012
Hongyanhe Liaoning 4x1080 CPR- CGNPC 8/07, 4/08, 3/09, 10/12, units 1-4 1000 8/09 2014
Ningde Fujian 4x1080 CPR- CGNPC 2/08, 11/08, 1/10, 12/12 - units 1-4 1000 15/7/10 2015
Fuqing Fujian 2x1080 CPR- CNNC 11/08, 6/09 10/13, units 1&2 1000 8/14
Yangjiang Guangdong 4x1080 CPR- CGNPC 12/08, 8/09, 8/13 - units 1-4 1000 15/7/10, 15/3/11 2016
Fangjiashan Zhejiang 2x1080 CPR- CNNC 12/08, 7/09 12/13, units 1&2 1000 10/14
Sanmen Zhejiang 2x1250 AP1000 CNNC 3/09, 12/09 11/13, units 1&2 9/14
Haiyang Shandong 2x1250 AP1000 CPI 9/09, 31/7/10 5/14, 3/15 units 1&2
Taishan Guangdong 2x1700 EPR CGNPC 10/09, 1/7/10 12/13, units 1&2 11/14
Shandong Shidaowan Shandong 210 HTR-PM Huaneng 1/10? 2013 or 2014
Fangchenggang/Hongsha Guangxi 2x1080 CPR- CGNPC early 2010 2014, ? units 1&2 1000
Asia Pacific Clean Tech Handbook 293 of 348 26-Apr-10 Fuqing Fujian 4x1080 CPR- CNNC 2010, ? units 3-6 1000
Changjiang Hainan 2x650 CNP-600 CNNC or First half 2010 2014, units 1&2 Huaneng 2015
Tianwan Jiangsu 2x1060 VVER- CNNC 10/2010 units 3&4 1000 (AES-91)
Hongshiding (Rushan) Shandong 2x1080 CPR- CNEC/CNNC Deferred from 2015 units 1&2 1000 2009?
Ningde Fujian 2x1080 CPR- CGNPC units 5&6 1000
Dafan, Xianning Hubei 2x1250 AP1000 CGNPC late 2010 units 1&2
Xiaomoshan Hunan 2x1250 AP1000 CPI 2010? 4/2015- (Jiulongshan) 2018 units 1&2
Taohuajiang Hunan 4x1250 AP1000 CNNC 9/2010 2015 units 1-4
Pengze Jiangxi 2x1250 AP1000 CPI 2010 2013-14 units 1&2
Haiyang Shandong 2x1250 AP1000 CPI 2010? units 3&4
Tianwan Jiangsu 2x1200 VVER- CNNC 10/2010 units 5&6 1200
Wuhu Anhui 2x1250 AP1000 CGNPC 12/2011 8/2016 units 1&2
Total: 57 63,130 MWe Source: WNA
Drivers & Constraints In June 2008, the China Electrical Council projected 60 GWe of nuclear capacity by 2020, which was an increase from 50GW proposed by the State Energy Bureau (SEB) in 2008 and the 40 GW target proposed by the NDRC in 2007. In addition, a further statement from the State Council in 2009 is considering raising the 2020 target to 86 GW installed.
Market Players & Competition
Nuclear Fuel China has ordered mineral refiners to reserve Thorium for future nuclear generation plans.
• China (Nuclear International) Uranium Corporation is responsible for CNNC's uranium exploration domestically. In December 2006, China Nuclear International Uranium Corporation, or simply China Uranium Corporation (Sino-Uranium or SinoU), was set up by CNNC to acquire uranium resources internationally, as well as undertaking exploration,
Asia Pacific Clean Tech Handbook 294 of 348 26-Apr-10 development and uranium production abroad.1 It is setting up a mine in Niger and is investigating prospects elsewhere.
• CNNC Overseas Uranium Holding
• China Jianzhong Nuclear Fuel Co Ltd is a CNNC subsidiary and its main PWR fuel fabricator, at Yibin in Sichuan. China North Nuclear Fuel China North Nuclear Fuel Co Ltd is a CNNC subsidiary set up in 1998 to run a fuel fabrication plant at Baotou in Inner Mongolia. A joint venture centred on it is being formed to progress research on thorium fuel cycle.
• China Baotau Nuclear Fuel. CNNC Baotou Nuclear Fuel Co Ltd was set up at the end of 2008 by SNPTC and the two CNNC fuel companies to make fuel for AP1000 reactors in Inner Mongolia.
• CGNPC Uranium Resource Co Ltd (CGNPC-URC) is a CGNPC entity responsible for mining and purchase of uranium resources, both domestic and imported. A related CGNPC subsidiary set up in 2007, Sino-Kazakhstan Uranium Resources Investment Co, has invested in two Kazakh uranium mines managed by Semizbai-U joint venture, following approval from NDRC. CGNPC-URC has also embarked upon a joint venture (Uz-China Uran LLC) with Uzbekistan's Goskomgeo focused on black shales in the Navoi region of Uzbekistan. Within China, in November 2008 CGNPC Uranium (Xinjiang) Co. Ltd., a JV between CGNPC-URC and Xinjiang Geology and Mineral Resources Bureau, was established.
• China Uranium Development Co Ltd (CUD) is an investment vehicle of CGNPC-URC buying equity in overseas uranium resources, notably by a 70% takeover of Australian uranium exploration company Energy Metals Limited.
Reactor Design and Construction
China has targeted nuclear energy as a key part of its energy policy. As with other strategic sectors, such as Wind and Solar, it has focused on the development of its domestic industry:
• PWRs will be the mainstream but not sole reactor type. • Nuclear fuel assemblies are fabricated and supplied indigenously. • Domestic manufacturing of plant and equipment will be maximised, with self-reliance in design and project management. • Technology transfer through Joint Venture with international companies
China has entered into a number of Joint Ventures to obtain key IP foreign partners and become self-sufficient in reactor design and construction.
Asia Pacific Clean Tech Handbook 295 of 348 26-Apr-10 • China National Nuclear Corporation (CNNC, www.cnnc.com.cn) controls most nuclear sector business including R&D, engineering design, uranium exploration and mining, enrichment, fuel fabrication, reprocessing and waste disposal. It is the major investor in all nuclear plants in China. Established by the State Council in 1988 as a self-supporting economic entity, it "combines military production with civilian production, taking nuclear industry as the basis while developing nuclear power and promoting a diversified economy." It has numerous subsidiaries, including CNNC International Ltd (www.cnncintl.com), which is listed in Hong Kong. CNNC designed and built Qinshan Phases I and II, and controls the full Qinshan power plant. It has a payroll of about 1,000,000 and owns shares in many of the nuclear power generation projects. In particular it is a champion of local designs.
• State Nuclear Power Technology Corporation (SNPTC, www.snptc.com.cn) was set up in 2004 to take charge of technology selection for new plants being bid from overseas. This is through its Preparatory Office which draws expertise from other organizations such as CGNPC. SNPTC is directly under China's State Council and closely connected with it. Early in 2007, SNERDI was removed from CNNC control and assigned to it as an R&D arm, boosting its stature considerably. Westinghouse announced in 2008 that it was working with SNPTC and Shanghai Nuclear Engineering Research & Design Institute (SNERDI) to jointly develop a reactor, based of its AP1000 design.
• China Power Investment Corporation (CPI, www.cpicorp.com.cn), is one of five state- owned power generation holding companies formed from the State Power Corporation in 2002 and inheriting all its nuclear capacity. It is a major power generator (controlling 54 GWe at the end of 2009, including only 1351 MWe nuclear) and is the largest state-owned power holding company with nuclear assets. It was at the forefront of discussions on plants for the 11th Five-Year Plan (2006-10). CPI owns 19 operating power plants above 1000MWe each, a majority of Shandong Haiyang nuclear power project, 45% of Liaoning Hongyanhe nuclear power project phase I, and holds minority shares in five nuclear power plants in operation, and three under construction. It is carrying out preparation for nuclear power projects in Guangxi, Liaoning, Hunan, Jilin and Chongqing.
• China Guangdong Nuclear Power (CGNPC, www.cgnpc.com.cn). CGNPC comprises some 20 companies with gross assets of RMB 133 billion and net assets of RMB 41 billion. CGNPC is responsible for Daya Bay, Ling Ao, Yangjiang, Hongyanhe and Ningde power stations, as well as further projects in the province and outside it. CGNPC was established in 1994 and is 45% owned by the provincial government (via China Guangdong Nuclear Power Group), 45% by CNNC and 10% by CPI. Despite its relative independence it claims so be "under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council." There is 25% Hong Kong equity in the Daya Bay plant. Areva and CGNPC announced establishment of an engineering joint venture as a technology transfer vehicle for development EPR and other PWR plants in China.
• China Huaneng Group
Asia Pacific Clean Tech Handbook 296 of 348 26-Apr-10 Power Development Co Ltd to handle nuclear power projects, initially two projects in Shandong province. It has formed links with both CNNC and CGNPC. It is an independent state-owned but incorporated business entity focused on power generation. It aims to have 80 GWe installed by 2010 and 120 GWe by 2020.
• Huaneng International Power Development Corporation (HIPDC) is a sino-foreign JV company owned 57% by China Huaneng Group and set up to develop, construct and operate power plants in China. HIPDC controls Huaneng Power International (HPI), a sino-foreign joint stock company incorporated in China, with a 42% shareholding in it. HPI is the country's largest listed generator. China Huaneng Group also has a 9% direct shareholding in HPI, which develops, constructs, operates and manages large-scale power plants in China nationwide.
• The China Zhongyuan Engineering Corporation is involved with constructing a 300 MWe PWR unit (CNP-300) at Chasma in Pakistan – a twin to that already commissioned in 2000 and similar to Qinshan 1 – China's first indigenously-designed (by SNERDI) nuclear power plant. Qinshan phase 2 is CNP-600, a scaled-up two-loop version of the same.
6.10.5 Japan
Market Size & Growth Japan's plan to cut greenhouse gas emissions is expected to boost the nation's share of electricity from nuclear power to 44% from 31% now, a government estimate shows.
As part of METI Cool Earth 50 energy innovative technology plan in 2008, the Japan Atomic
Energy Agency (JAEA) has modelled a 54% reduction in CO2 emissions (from 2000 levels) by 2050 leading on to a 90% reduction by 2100. This would lead to nuclear energy contributing about 60% of primary energy in 2100.
Asia Pacific Clean Tech Handbook 297 of 348 26-Apr-10 Proposed Nuclear Reactors in Japan Reactor Type Capacity Utility start * start * construction operation MW
Ohma 1 ABWR 1383 EPDC/ J- mid 2010 11/2014 Power
Fukushima I - 7 ABWR 1380 Tepco 4/2010 10/2015
Fukushima I - 8 ABWR 1380 Tepco 4/2011? 10/2016
Higashidori 1 Tepco ABWR 1385 Tepco 11/2009 3/2017
Tsuruga 3 APWR 1538 JAPC 10/2010 2016 Tsuruga 4 APWR 1538 JAPC 10/2011 2017 Kaminoseki 1 ABWR 1373 Chugoku 6/2012 3/2018
Sendai 3 APWR 1590 Kyushu 2013 2019
Higashidori 2 Tepco ABWR 1385 Tepco 2014? 2019 or later
Hamaoka 6 ABWR 1380 Chubu 2015 2020
Higashidori 2 ABWR 1385 Tohoku 2016 2020 or later Tohoku
Namie-odaka BWR 825? Tohoku 2017 3/2021
Kaminoseki 2 ABWR 1373 Chugoku 2018 2022
Total (13) 17,915 MWe
Monju Prototype 246 JAEA operated 1994-95, awaiting FBR restart
Source: WNA
Drivers & Constraints
In March 2002 the government announced that it would focus on nuclear energy to achieve greenhouse gas emission reduction goals and submitted a 10-year energy plan to METI. The plan called for an increase in nuclear power generation by about 30% (13,000 MW), with the addition of 9 to 12 new nuclear plants by 2011. However, due to the safety fears and shut of nuclear plants, Japan has not increased it nuclear power capacity at 53 reactors (46,236 MW). There are an additional 3 plants (3300 MW) under construction and a further 13 plants (17,915 MW) planned.
In July 2005 the Atomic Energy Commission reaffirmed policy directions for nuclear power with a 30-40% share target for nuclear power in total generation after 2030.
Asia Pacific Clean Tech Handbook 298 of 348 26-Apr-10 Market Players & Competition
Nuclear Fuel • Japan Nuclear Fuel Ltd (JNFL) operates a commercial enrichment plant at Rokkasho. This began operation in 1992 using indigenous technology. It has been testing a lead cascade of its new Shingata design, and expects to re-equip the plant with this, starting in April 2010, and with the new equipment to come on line in September 2011. JNFL's shareholders are the power utilities.
• Mitsubishi Nuclear Fuel Co Ltd operates a 440 tU/yr fuel fabrication facility, which started up in 1972 and has had majority shareholding by Mitsubishi Materials Corporation (MMC). In April 2009 this was restructured as a comprehensive nuclear fuel fabrication company to supply Japanese customers with uranium fuel assemblies for pressurized water reactors (PWR), boiling water reactors (BWR) and high-temperature gas-cooled reactors (HTR), as well as MOX fuel assemblies. It will also provide related services, including uranium reconversion from 2014.
• Nuclear Fuel Industries (NFI) operates two fuel fabrication plants which have operated from 1976 and 1980 respectively. Kumatori (284 tU/yr) produces PWR and BWR fuel, Tokai (200 tU/yr capacity) is also set up to produce HTR and FNR fuel. NFI is also involved in a project to design MOX fuel for Areva to manufacture for Japanese power plants. In 2009 Westinghouse bought the 52% share of NFI owned by Furukawa and Sumitomo for $100 million.
Reactor Design and Construction • GE-Hitachi
• Westinghouse
• Mitsubishi Heavy Industries (MHI). In April 2007 the government selected MHI as the core company to develop a new generation of FBRs. This was backed by government ministries, the Japan Atomic Energy Agency (JAEA) and the Federation of Electric Power Companies of Japan. These are concerned to accelerate the development of a world-leading FBR by Japan.
Asia Pacific Clean Tech Handbook 299 of 348 26-Apr-10 MHI has been actively engaged in FBR development since the 1960s as a significant part of its nuclear power business.
• Japan Steel Works (JSW) The main company producing the heavy forgings required for nuclear power plants spent 40 billion Yen ($330 million) from 2007 to increase capacity in advance of orders expected from both China and the USA. Japan Steel Works (JSW) has production and research bases in Hiroshima, Yokohama and Muroran. The Muroran centre, in Hokkaido, hosts the heavy steel works and research laboratory relevant to power generation. Muroran manufactures reactor pressure vessels, steam generator components, generator & turbine rotor shafts, clad steel plates and turbine casings for nuclear power plants. JSW has been manufacturing forgings for nuclear plant components to US Nuclear Regulatory Commission standards since 1974, and around 130 JSW reactor pressure vessels are used around the world - more than one third of the total.
Utilities • J-Power, is preparing to build its Ohma nuclear plant - 1383 MWe Advanced Boiling Water Reactor (ABWR) - in Aomori prefecture. Construction of unit 1 was due to start in August 2007 for commissioning in 2012, but was delayed by more stringent seismic criteria, and then delayed again in 2008
6.10.6 South Korea
Market Size & Growth South Korea has embarked on a large nuclear power generation program through Korea Nuclear Hydro Power (KNHP) and expected to increase generation to 243 billion kWh.
South Korean energy policy has been driven by considerations of energy security and the need to minimise dependence on current imports. Policy is to continue to have nuclear power as a major element of electricity production.
After drawing on Westinghouse and Framatome (now Areva) technology for its first eight PWR units, and Combustion Engineering (which became part of Westinghouse) for two more, the Korean Standard Nuclear Power Plant (KSNP) became a recognised design, and evolved a little to KSNP+. In 2005 the KSNP/KSNP+ was rebranded as OPR-1000 (Optimised Power Reactor) apparently for Asian markets, particularly Indonesia and Vietnam. Six operating units and four under construction are now designated OPR-1000.
The Ministry of Education, Science & Technology's third comprehensive nuclear energy development plan, for 2007-11, projected that South Korea should develop its nuclear industry into one of the top five in the world, with about 60% of electricity from nuclear by 2035.
Asia Pacific Clean Tech Handbook 300 of 348 26-Apr-10 Proposed Nuclear Power Plants in South Korea Reactor Type Net capacity Start construction Commercial operation
Shin Kori 1 OPR-1000 1000 MWe June 2006 12/2010
Shin Kori 2 OPR-1000 1000 MWe June 2007 12/2011
Shin Wolsong 1 OPR-1000 1000 MWe November 2007 3/2012
Shin Wolsong 2 OPR-1000 1000 MWe September 2008 1/2013
Shin Kori 3 APR-1400 1350 MWe October 2008 9/2013
Shin Kori 4 APR-1400 1350 MWe September 2009 9/2014
Shin Ulchin 1 APR-1400 1350 MWe March 2011 12/2015
Shin Ulchin 2 APR-1400 1350 MWe March 2012 12/2016
Shin Kori 5 APR-1400 1350 MWe 8/2014 12/2018
Shin Kori 6 APR-1400 1350 MWe 8/2015 12/2019
Shin Wolsong 3 APR-1400 1350 MWe 6/2020
Shin Wolsong 4 APR-1400 1350 MWe 6/2021
Total 12 14,800 MWe
Source: WNA
Drivers & Constraints The MKE declared in January 2010 that it aimed to achieve exports of 80 nuclear power reactors worth $400 billion by 2030, in the course of becoming the world's third largest supplier of nuclear technology, with a 20% share of the world market, behind the USA and France or Russia.
Market Players & Competition
Nuclear Fuel • Korea Atomic Energy Research Institute (KAERI) has developed both PWR and Candu fuel technology
• Korea Nuclear Fuel Company (KNFC) have supplied PWR fuel since 1990 and Candu PHWR fuel (unenriched) since 1987. KNFC has capacity of 550 t/yr for PWR fuel and 700 t/yr for Candu PHWR fuel, and supplies all KHNP's needs.
Reactor Design and Construction • KHNP
Asia Pacific Clean Tech Handbook 301 of 348 26-Apr-10 6.10.7 Taiwan
Market Size & Growth Taiwan has 6 nuclear power stations in operation. Nuclear power has been a significant part of the electricity supply for two decades and now provides one quarter of base-load power and 17% overall, though nuclear comprises only 11% of 46 GWe installed capacity.
In May 2009 Taipower was examining the prospects for six more reactors, starting with a pair at an established site to be on line about 2020, though more recently it has projected one further unit beyond Lungmen 1&2 being on line by 2025.
Drivers & Constraints Nuclear Power is seen as a cost effective alternative to other fuel sources and will form a key component of its power generation mix.
Market Players & Competition • Taipower operates all 6 existing nuclear power stations and will be responsible for operating the new proposed plants.
6.10.8 India
Market Size & Growth
India has a streamlined nuclear power program and expects to have 20,000 MW nuclear capacities on line by 2020. It aims to supply 25% of electricity from nuclear power by 2050. It currently has 27 reactors built, with 3,800MW in capacity.
India is also one of the largest sources of Thorium globally and will be best place to utilise the raw material that it has domestically and become less reliant on Uranium.
Proposed Nuclear Reactors Reactor Type MWe net, Project Commercial operation Safeguards status each control due Kaiga 4 PHWR 202 MWe NPCIL 3/2010 Rajasthan 6 PHWR 202 MWe NPCIL 2/2010 Oct 2009 under new agreement Kudankulam 1 PWR 950 MWe NPCIL 9/2010 item-specific (VVER) Kudankulam 2 PWR 950 MWe NPCIL 3/2011 item-specific (VVER) Kalpakkam FBR 470 MWe Bhavini 9/2011 - PFBR Total (5) 2774 MWe Source: WNA
Asia Pacific Clean Tech Handbook 302 of 348 26-Apr-10 New Energy Parks Nuclear Power Corporation of India (NPCIL) intends to set up "Nuclear Energy Parks" with a capacity of up to 10,000 MW at a single location. By 2032, 40-45 GW would be provided from 5 parks. Proposed new energy parks include:
• Kudankulam in Tamil Nadu, with a capacity of 6800 MW. • Jaitapur in Maharashtra, with a capcity of 9600 MW. • Haripur in West Bengal: to host four further Russian VVER-1200 units, with a capacity of 4800 MW. • Markandi (Pati Sonapur) in Orissa with plans for up to 6000 MW of PWR capacity. • Kumharia in Haryana, a proposal for a 2800 MW nuclear power plant and the site is apparently earmarked for four indigenous 700 MW PHWR units. • Bargi in Madhya Pradesh is also designated for two indigenous 700 MW PHWR units. • Mithi Virdi (or Chayamithi Virdi) in Gujarat: to host US technology (Westinghouse AP1000). • Kovvada in Andhra Pradesh: to host US technology (GE Hitachi ESBWR - possibly ABWR).
The AEC has also mentioned possible new nuclear power plants in Bihar and Jharkhand.
Drivers & Constraints The Indian Atomic Energy Commission (AEC) is the main policy body. The target since about 2004 has been for nuclear power to provide 20 GW by 2020. Late in 2008 NPCIL projected 22 GW on line by 2015, and a 50 GW of nuclear power operating by 2050. In June 2009 NPCIL said it aimed for 63 GW nuclear by 2032, including 40 GW of PWR capacity and 7 GW of new PHWR capacity. The AEC however envisages some 500 GWe nuclear on line by 2060, and has since speculated that the amount might be higher still: 600-700 GWe by 2050, providing half of all electricity.
Next Generation Reactors ‐ Thorium With a large reserve of thorium, India has targeted thorium for large-scale energy production to reduce its reliance on imported uranium. The plan will be in three stages:
• Pressurised Heavy Water Reactors (PHWRs) fuelled by natural uranium, plus light water reactors, producing plutonium.
• Fast Breeder Reactors (FBRs) using plutonium-based fuel to breed U-233 from thorium. The blanket around the core will have uranium as well as thorium, so that further plutonium (particularly Pu-239) is produced as well as the U-233.
• Advanced Heavy Water Reactors burn the U-233 and this plutonium with thorium, getting about 75% of their power from the thorium. The used fuel will then be reprocessed to recover fissile materials for recycling.
Asia Pacific Clean Tech Handbook 303 of 348 26-Apr-10 Market Players & Competition
Nuclear Fuel
• Mining and processing of uranium is carried out by Uranium Corporation of India Ltd, a subsidiary of the Department of Atomic Energy (DAE), at Jaduguda and Bhatin (since 1967), Narwapahar (since 1995) and Turamdih (since 2002) - all in Jharkhand near Calcutta. All are underground, the last two being modern. • India has reserves of 290,000 tonnes of thorium - about one quarter of the world total, and these are intended to fuel its nuclear power program longer-term
Design and Operation • Nuclear Power Corporation of India Ltd (NPCIL)
• National Thermal Power Corporation (NTPC)
Construction • Larsen & Toubro (L&T) announced in July 2008 that it was preparing to venture into international markets for supply of heavy engineering components for nuclear reactors.
• Reliance Power (RPower), NPCIL, and BHEL said that they plan to invest over US$ 50 billion in the next five years to expand their manufacturing base in the nuclear energy sector. BHEL plans to spend $7.5 billion in two years building plants to supply components for reactors of 1,600 MWe. It also plans to set up a 50-50 venture with NPCIL that will supply turbines for nuclear plants of 700 MWe, 1,000 MWe and 1,600 MWe and will seek overseas partners to provide technology for these enterprises
• Hindustan Construction Co. (HCC) has built more than half of India's nuclear power capacity, notably all 6 phases of the Rajasthan Atomic Power Project and also Kudankulam. It specializes in prestressed containment structures for reactor buildings. In September 2009 it formed a joint venture with UK-based engineering and project management firm AMEC PLC to undertake consulting services and nuclear power plant construction. HCC has an order backlog worth 10.5 billion rupees ($220 million) for nuclear projects from NPCIL and expects six nuclear reactors to be tendered by the end of 2010.
Asia Pacific Clean Tech Handbook 304 of 348 26-Apr-10 6.10.9 Singapore
Market Size & Growth There are currently no nuclear plants in commercial use in Singapore.
Drivers & Constraints Singapore has undertaken a feasibility study on nuclear power as part its study on energy security.
Market Players & Competition
There are no companies identifed in this sector in Singapore.
6.10.10 Indonesia
Market Size & Growth Plans are to call tenders in 2008 for two 1000 MWe units, Muria 1 & 2, leading to a decision in 2010, with construction starting soon after and commercial operation from 2016 and 2017. Tenders for Muria units 3 & 4 are expected to be called for in 2016, for operation from 2023. The government has said that it has $8 billion earmarked for four nuclear plants of total 6 GWe to be in operation by 2025. Under current plans it aims to meet 2% of power demand from nuclear by 2017. There is also proposed a small power and desalination plant for Madura, using the S. Korean SMART reactor.
Drivers & Constraints A 2001 power generation strategy showed that introduction of a nuclear plant on the Java-Bali grid would be possible in 2016 for 2 GWe rising to 6-7 GWe in 2025, using proven 1000 MWe technology with 85% capacity factor and investment cost $2000/kWe. Late in 2003 National Atomic Energy Agency (BATAN) narrowed the choice of plant to a South Korean 1000 MWe pressurised water reactor.
Under the 2006 Law on Nuclear Reactors the project may be given to an IPP to build and operate, on one of three sites on the central north coast of Java. Plans were to call tenders in 2008 for two 1000 MWe units, Muria 1 & 2, leading to decision in 2010 with construction starting soon after and commercial operation from 2016 and 2017, but this schedule has slipped. Tenders for Muria units 3 & 4 were expected to be called for in 2016, for operation from 2023.
The government has said that it has $8 billion earmarked for four nuclear plants of total 6 GWe to be in operation by 2025. Under current plans it aims to meet 2% of power demand from nuclear by 2017. It is anticipated that nuclear generation cost would be about 4 cents/kWh (US) compared with 7 c/kWh for oil and gas.
Market Players & Competition In July 2007 KHNP signed a memorandum of understanding with Indonesia's PT Medco Energi Internasional to progress a feasibility study on building two 1000 MWe OPR-1000 units from KHNP at a cost of US$ 3 billion. The Indonesian government earlier confirmed in principle
Asia Pacific Clean Tech Handbook 305 of 348 26-Apr-10 approval of four 1000 MWe units on the Muria peninsula, 450 km east of Jakarta in central Java, with a view to commissioning in 2016
In addition, BATAN has undertaken a pre-feasibility study for a small Korean SMART reactor for power and desalination on Madura. However, this awaits the building of a reference plant in Korea. Also the province of Gorontalo on Sulawesi is reported to be considering a floating nuclear power plant from Russia, and late in 2007 a cooperation agreement with Japan was signed, envisaging its help in building and operating nuclear power plants.
The Japanese and Indonesian governments signed a cooperation agreement in November 2007 relating to assistance to be provided for the preparation, planning, and promotion of Indonesia's nuclear power development and assistance for public relations activities.
6.10.11 Malaysia
Market Size & Growth There are currently no nuclear plants in commercial use in Malaysia.
Drivers & Constraints
A comprehensive energy policy study including consideration of nuclear power will be completed before 2010. The state-owned utility TNB is tentatively in favour of nuclear power and in August 2006 the Malaysian Nuclear Licensing Board said that plans for nuclear power after 2020 should be brought forward and two reactors built much sooner.
Market Players & Competition There are currently no nuclear plants in commercial use in Malaysia.
6.10.12 Philippines
Market Size & Growth There are currently no nuclear plants in commercial use in the Philippines.
Drivers & Constraints
In 2007 the Philippines Department of Energy (DOE) set up a project to study the development of nuclear energy, in the context of an overall energy plan for the country. Nuclear energy would be considered in order to reduce the country's dependency on imported oil and coal. In its 2008 update of the National Energy Plan, 600 MWe was projected to be in operation by 2025, with further 600 MWe increments in 2027, 2030 and 2034 to give 2400 MWe.
Market Players & Competition There are currently no nuclear plants in commercial use in the Philippines.
Asia Pacific Clean Tech Handbook 306 of 348 26-Apr-10 6.10.13 Thailand
Market Size & Growth Interest by Thailand in nuclear power was revived by a forecast growth in electricity demand of 7% per year for the next twenty years. About 70% of electricity is from natural gas. Capacity requirement in 2016 is forecast at 48 GWe.
Drivers & Constraints
In June 2007 the Energy Minister announced that it would proceed with plans to build a 4000 MWe nuclear power plant, and has budgeted funds to 2011 for preparatory work. Construction will commence in 2015, to operate from 2020.
Thailand is currently investigating the potential for nuclear power by 2020, as part its 15 year Masterplan.
Market Players & Competition
Thailand has had an operating research reactor since 1977 and a larger one is under construction.
In November 2009 EGAT and CLP Holdings Ltd signed an agreement with China Guangdong Nuclear Power Corporation regarding nuclear power development.
6.10.14 Australia
Market Size & Growth While Australia has the largest Uranium resources in the world, accounting for around a quarter of the world’s reserves (1.24 million tonnes), there are currently no nuclear plants in commercial use in Australia.
About 96% of Australia's Economically Demonstrated Resources (EDR) are within six deposits: Olympic Dam, Ranger, Jabiluka, Koongarra, Kintyre and Yeelirrie.
Drivers & Constraints
In December 2006 the report of the Prime Minster's expert taskforce considering nuclear power was released. It said nuclear power would be 20-50% more expensive than coal-fired power and (with renewables) it would only be competitive if "low to moderate" costs are imposed on carbon emissions (A$ 15-40 - US$ 12-30 - per tonne CO2). "Nuclear power is the least-cost low- emission technology that can provide base-load power" and has low life cycle impacts environmentally.
The report said that the first nuclear plants could be running in 15 years, and looking beyond that, 25 reactors at coastal sites might be supplying one third of Australia's (doubled) electricity demand by 2050.
Asia Pacific Clean Tech Handbook 307 of 348 26-Apr-10 In April 2007 the Prime Minister announced that the government would proceed to open the way for nuclear power in Australia by setting up a nuclear regulatory regime and removing any regulatory obstacles which might unreasonably stand in the way of building nuclear power plants. Australia would also apply to join the Generation IV International Forum, which is developing advanced reactor designs for deployment about 2025. However, with a change of government late in 2007 the move towards nuclear power was halted.
Market Players & Competition
Nuclear Fuel • Paladin
• Enery Metals Limited
Design and Construction Australia only has two research nuclear reactors:
• High Flux Australian Reactor (HIFAR), was for many years the only operating nuclear reactor in Australia. It was used for materials research, to produce radioactive materials for medicine and industry and to irradiate silicon for the high performance computer industry.
• Open Pool Australian Lightwater reactor (OPAL), the new research reactor is is a 20 MW open pool design using low-enriched fuel (less than 20% enriched).
6.10.15 New Zealand
Market Size & Growth There are currently no nuclear plants in commercial use in New Zealand.
Asia Pacific Clean Tech Handbook 308 of 348 26-Apr-10 Drivers & Constraints In 1968 the national power plan first identified the likely need for nuclear power in NZ a decade or more ahead, since readily-developed hydro-electric sites had been utilised. However, a further report in 1978 said that there was no immediate need for NZ to embark upon a nuclear power program, but suggested that early in 21st century "a significant nuclear programme should be economically possible."
Market Players & Competition There are currently no nuclear plants in commercial use in New Zealand.
6.10.16 Summary of Companies Code Company Name Market Cap PE Country Segment (M Dollars) Ratio
PDN.AX Paladin Energy Ltd $2,621.8 N/A Australia Metals - Non Ferrous
EME.AX Energy Metals Ltd $66.9 N/A Australia Metals - Non Ferrous
China National Nuclear Unlisted Corporation N/A N/A China Nuclear Fuel
Unlisted Japan Nuclear Fuel N/A N/A Japan Nuclear Fuel
Unlisted GE-Hitachi N/A N/A Japan Reactor Design
Unlisted Westinghouse N/A N/A Japan Reactor Design
Unlisted KHNP N/A N/A South Korea Nuclear Utility
6.11 Wastewater 6.11.1 Background This section primarily looks at waste water treatment and water re-use, rather than water supply. In addition, the use of wastewater streams to generate biogas that can be used to generate power that overlaps with landfill gas generation in Section 6.11.
6.11.2 Targets & Incentives • China - The Ministry of Construction required that by 2010, the municipal wastewater treatment rate should not be lower than 70%, and all cities and counties should establish or plan to establish centralized wastewater treatment facilities.
• Japan - Japan’s wastewater facilities services only around 70% of the population. Japan is increasing its power generation from biogas with over 40 plants installed and more than 350 sewage treatment plants working with anaerobic digestion facilities in place.
• South Korea – South Korea is in the process of upgrading its wastewater systems to include tertiary treastment. There are around 400 treatment plants, with around 30 new plants constructed every year
Asia Pacific Clean Tech Handbook 309 of 348 26-Apr-10 6.11.3 Wastewater Process
Wastewater Treatment Water treatment technology is gradually shifting from traditional filter and settlement processes to membrane processing. Primary treatment involves separation, coagulation, flocculation and settlement of material. This stage is followed by a secondary stage involving filtration through sand beds or activated carbon to absorb chemical contaminants.
Water processing membranes are resin membranes with tiny perforations that range in size between micrometres (or millionths of a metre) to nanometres (billionths of a metre). The dimensions of the perforations allow them to filter out impurities under pressure, and increase the purity of the water. There are four main types of membrane, which are used in response to different applications:
• Reverse Osmosis (RO), used in the desalination process;
• Nano Filtration (NF);
• Ultra Filtration (UF); and
• Microporous Filtration (MF)
After potable water has been filtered, it then typically goes through a tertiary stage of disinfection. There are three methods of disinfection used in the potable water industry:
• Ozonation is a process of adding ozone to the water supply, whereby disease-causing microbes, including Giardia and Cryptosporidium, are deactivated.
• Ultraviolet takes place as water flows through an irradiation chamber. Micro-organisms in the water are inactivated when the UV light is absorbed. This damages their nucleic acid, thereby preventing the microbe from replicating and infecting a host.
• Chlorine is a disinfectant added to drinking water to reduce or eliminate microorganisms, such as bacteria and viruses. Chlorine remains the most commonly used drinking water disinfectant, used in more than 90% of the world’s drinking water either as the primary source of disinfection or as a secondary disinfection after an ozone or ultraviolet primary disinfection.
Reused Water Since much of the recycled water will not be clean enough to drink, re-used water can be used for agricultural purposes (which is the main user of water) with relatively little purification compared with desalinated water (where the salt has to be extracted), which requires extensive purification.
There are two types of water that can be re-used:
• Grey water is non-industrial wastewater generated from domestic processes. The US EPA defines grey water as non-drinkable water that can be reused for irrigation, flushing toilets, and other purposes. Grey water can be used immediately or treated and stored. It is distinct from black water, which contains more polluting chemical and biological contaminants.
Asia Pacific Clean Tech Handbook 310 of 348 26-Apr-10 • Reclaimed (or recycled) water is former wastewater that has been treated to remove solids and certain impurities. It is often only intended for non-potable uses (e.g., irrigation, dust control, fire suppression); but with more advanced treatment, it can be for potable reuse.
Biogas Biogas is created from the anaerobic digestion of biodegradable matters, such as wastewater, which produces methan and used to generated electricity. Figure 6.26 – Wastewater & Desalination Process
Primary Secondary Tertiary End Product
Sandbed Chlorine Biogas Separation
Flocculation Activated Carbon UV Grey Water Settlement
Membrane Ozone Potable Water
Distillation
Saltwater Membrane
6.11.4 Research & Development Research of 180,000 patent filings in the wastewater sector undertaken by Thomson Reuters (from 1985 to 2008) showed that Japan was the global leader, followed by USA and Germany. China ranked 6th with 18,278 patent documents47.
Assignee analysis of water pollution and treatment patents applied in China showed that individual inventers contribute a significantly higher proportion of patent applications (54%), with Universities and enterprises accounting for 19% each, while research institutes only accounted for 8% of patents filed. Further analysis of the top 20 assignees indicates that the Chinese universities (15 out of 20). Further
47 Patent Activity on Water Pollution and Treatment in China – a Scientometric Perspective, Institute of Scientific and Technical of Information of China, Beijing, 100038, P.R.China. Thomson Reuters, Beijing,100190, P.R.China, ISTIC- Thomson Reuters Joint Lab for Scientometrics Research
Asia Pacific Clean Tech Handbook 311 of 348 26-Apr-10 investigation, showed that there was little collaboration among enterprises, universities, and research institutes are found.
The top 20 patent assignees for wastewater in China Rank Patent Assignee No Patents
1 Research Center for Eco-Environmental Sciences, Chinese Academy of Sciences 184 184
2 Tsinghua University 157
3 Harbin Institute of Technology 151
4 China Petroleum & Chemical Corporation 149
5 Nanjing University 128
6 Zhejiang University 113
7 Shanghai Jiao Tong University 89
8 South China University of Technology 88
9 Tongji University 84
10 Shanghai Wansen Water treatment Co.,Ltd 78
11 Tianjin University 65
12 Dalian University of Technology 43
13 Nankai University 38
14 Dalian Institute of Chemical Physics, Chinese Academy of Sciences 32
15 15 Shandong University 30
16 The Institute of Applied Ecology, Chinese Academy of Sciences 29
17 Southeast University 29
18 Sun Yat-sen university 27
19 Sichuan university 27
20 University of Science and Technology Beijing 27 Source: Thomson Reuters Scientific
6.11.5 China
Market Size & Growth
Wastewater In early 2006, the Ministry of Construction required that by 2010, the municipal wastewater treatment rate should not be lower than 70%, and all cities and counties should establish or plan to establish centralized wastewater treatment facilities. Water remains one of the major focuses of the 11th Five-Year Plan (2006-2010) environmental protection plan. While stepping up efforts to increase and improve municipal wastewater treatment facilities, China will begin to levy sewage treatment fees throughout the country in the coming five years.
Asia Pacific Clean Tech Handbook 312 of 348 26-Apr-10 China generated 57.2 billion tons of wastewater in 2008; municipal wastewater and industrial wastewater account for 58% and 42% respectively.
Investment in Municipal Wastewater Treatment Plants Year Budget ($ billion) Number of Plants Capacity (Mm3/day)
2001-2008 1.17 78 3.785
2009-2013 0.77 57 2.905
Total 1.94 135 6.690
Source: PRC State Environmental Protection Administration
China is likely to be a major market with the development of wastewater treatment capacity and continued water shortages in the north east. Beijing already recycles 60% of its wastewater but recently announced (April 2009) a three-point plan that includes RMB 35bn (US$5.13bn) of investment in water and wastewater infrastructure between 2009 and 2013. The plan includes increasing charges for recycled water (these have remained unchanged since being fixed at $0.15/m3 in 2003) and specific goals to ensure that 100% of wastewater is eventually recycled. It is now required, for example, that newly developed residential buildings in Beijing with construction areas over 30,000 m2 build on-site wastewater reuse facilities.
Biogas China has also included biogas treatment technologies, such as anaerobic-aerobic activated sludge process. Examples of projects include The wastewater treatment plant in Shandong and Baoan District Wastewater Treatment Plant in Guangdong.
Asia Pacific Clean Tech Handbook 313 of 348 26-Apr-10 MSW and food waste biogas plants currently under consideration in China Location Start Feedstock Technology Capacity € Comments Developer mt/a Beijing Dong 2007 Restaurant- & Linde Valorga 0.2 lnv.18m Feasibility Cun Taihu MSW,manure Biomax Fee13.5/t 2005, CDM Coun.
Beijing till Restaurant- &. 9 plants 2010 MSW, .. anticipated Shanghai 2008 MSW, BMW 0.22 Inv. 32m Ppublic tender Jinshan
Shanghai 2007 Municipal wet Valorga 0.18 to lnv.30m Feasibility waste Biomax 0.29 Fee17/t 2005, CDM Putuo, PDD1/06 Shanghai
Guangzhou 2007 Municipal wet Valorga 0.36 lnv.32m Preparation Likeng waste Biomax (Guandong)
Changsha 2005 MSW 0.73 lnv.11m Biogas power plant Huiming (Hunan)
Mianyang 2002 MSW Tunnel type 0.25 AD: AD as pilot 3600t/a project (Sichuan)
Yingkou 2007 MSW, SS Tsinghua 0.27 lnv.20m (Liaoning) Tongfang Shenyang 2010 BMW (source Wet AD 0.12 to lnv.12m Prefeasibility- separation) recommended 0.20 Fee >6/t study (Liaoning)
Based on the 'National Biogas Construction Plan of the MOA 2003,48 the small-scale urban household biogas digesters were built and supported in the south western rural areas of China In 2003 8m units were in use, which grew to about 10% of the rural population in 2005, producing
48 National Biogas Construction Plan of the MOA 2003
Asia Pacific Clean Tech Handbook 314 of 348 26-Apr-10 5.5bn nm3/a biogas from 15m units. It is projected that 56m digesters will be in operation by 2020 and 20bn nm3/a of biogas will be produced for decentralised energy supply (cooking, lightning).
Drivers & Constraints
Wastewater China has stepped up its efforts to improve the regulatory framework for modern wastewater management. A range of regulatory and economic instruments are used, such as charging users for water services. However, local enforcement remains weak in many regions.
The 11th Five Year Plan, the Chinese Government has set a target of 1.35% of GDP to be invested in “environmental protection”, which includes wastewater treatment. Continued investment in this sector is expected to continue into the 12th Five-Year Plan (2011-2015). China has also stipulated relevant policies to encourage private and foreign investment in wastewater treatment facilities. Key wastewater treatment projects in China include:
• South-to-North Water Diversion Project. The construction of the South-to-North Water Diversion Project will create a large water supply and wastewater treatment market. USD1.93 billion is the planned investment for the construction of municipal wastewater treatment plants. These projects are located in Jiangsu, Shandong, Hebei, Tianjin, Anhui and Henan Provinces.
• Three Gorges Watershed Area. As part of the Three Gorges Project, wastewater treatment projects will be implemented in Hubei, Sichuan, Guizhou, Yunnan Provinces and Chongqing Municipality. China plans to build 20 more sewage disposal plants in the Three Gorges Reservoir area in central Hubei Province on the Yangtze River to further improve water quality in the reservoir. These projects will be built in Zigui, Xingshan, Badong, Yuan'an, Enshi and Lichuan counties in the reservoir area.
• Beijing 2008 Olympic Games. Nine wastewater treatment plants, 1000 km long wastewater main pipelines, nine wastewater reclamation and reuse facilities, and four sludge digesting facilities were constructed for a total investment will be USD1.45 billion.
Biogas
China’s 2003-2010 National Rural Biogas Construction Plan is to increase biogas-using households by a further 31 million to a total of 50 million, so the rate of use would reach 20% of total rural households.
Market Players & Competition
Wastewater • Epure
Asia Pacific Clean Tech Handbook 315 of 348 26-Apr-10 facility in Saudi Arabia, the company’s first venture outside China. Epure should in our view be a key beneficiary of the growing demand for water in China. We maintain a Neutral rating on the stock.
• Pan Asia Environmental Protection Group Limited <0556.HK> together with its subsidiaries, is engaged in the sale of pipes, water treatment and flue gas treatment products and equipment, as well as undertaking of environmental protection (EP) construction engineering projects and provision of EP-related professional services. The Company operates in three segments: sale of EP products and equipment, EP construction engineering projects, and the provision of professional services. The sale of EP products and equipment segment is responsible for selling pipes, and water and flue gas treatment products and equipment. The water treatment systems of the Company are used mainly to process industrial and urban wastewater. Its flue gas treatment systems are used to remove waste gases generated in an array of industrial processes.
Biogas • Hongzhi Alcohol Corporation located in Mianzhu, Sichuan Province which is the largest alcohol factory in south-western China, uses its industrial organic wastewater, sewage and dregs to produce biogas. The city of Mianzhu treats 98 per cent of municipal sewage including wastewater from hospitals through digesters with a total capacity of 10,000 m3.
• Chenming Paper Co. which generates 300 tons of sludge a day is adding its own start up biogas program using pulp wastes. The same goes for intensive animal husbandry on many large or medium size livestock and poultry farms in the suburbs of cities.
6.11.6 Japan
Market Size & Growth
Wastewater As of March 2006, Japan’s wastewater facilities serviced 69% of the population. Of the remainder, 12% of households used septic tanks and 19% had no access to sanitation. To improve this, the sector’s first priority is to expand the wastewater treatment system in rural areas.
Production of Water Pollution Control Equipment Millions of Dollars 2004 2005 2006
Industrial wastewater treatment 608 613 678
Sewage water treatment 1,989 1,703 1,303
Human waste treatment 379 324 268
Sewage sludge treatment 1,107 809 581
Source: Japanese Society of Industrial Machinery Manufacturers
Asia Pacific Clean Tech Handbook 316 of 348 26-Apr-10 Biogas Japan is increasing the amount of biogas plants with a high speed. Power generation from stockfarming waste, sewage sludge, food waste and biomass is in 2007 increased to over 40 plants, build and under construction with a electric power generation over 9 million kWh. More then 350 sewage treatment plants working with anaerobic digestion facilities of the sludge, with more plants developing power generation facilities from 30 today and 100 million kWh per year.
Drivers & Constraints Japan has two sets of legislation that deals with wastewater:
• The Water Pollution Control Law (WPCL) designates facilities that emit hazardous wastewater as Specified Facilities • The Sewage Law refers to those same facilities as Specified Business Premises.
Market Players & Competition
Pump • Ebara <6361.T> The pump business is Ebara’s core business segment and it has historically delivered a very stable revenue stream. The environment-related business at Ebara also offers significant exposure to the water sector. Two thirds of Ebara’s business is focused on Japan.
• Kurita Water Industries <6370.T> Business is focused on the sale of ultra pure water production systems (used for cleaning in the semiconductor and FPD manufacturing processes) and water treatment systems for industrial uses. Kurita also operates maintenance/service divisions to support these systems. Growth in equipment sales may slow (it has averaged annual growth of 17% over the past five years), but we expect the service businesses (which account for 70% of total FY 2009 revenue) to bounce back when facility operation rates and capex in semiconductor/FPD manufacturing-related companies recover. Growing demand for desalination plants, water recycling and water treatment systems and chemicals should continue to support Kurita’s business.
• Tsurumi Manufacturing Co., Ltd. <6351.T> is a Japan-based company principally engaged in the manufacture, purchase, sale, leasing and repair of various water pumps, as well as the provision of post-sale services. The Company is also involved in businesses related to machinery equipment installation, civil engineering, electrical work, piping work, water utility construction, cleaning facility construction and steel structure work, as well as the leasing of fixed assets, which include real estates, machinery, office equipment and automobiles. The Company has 10 subsidiaries and one associated company in Japan, Hong Kong, Singapore, the United States, Taiwan, China and Thailand.
• China Boqi Environmental Solutions Technology <1412.T> is a holding company engaged in the provision of environmental services in China, through its subsidiaries. The Company is active in three business segments. The Flue Gas Desulfurization (FGD) segment is engaged in the design, construction, installment and the provision of after-sales services of desulphurization systems for the treatment of sulfur oxide in flue gas, denitration systems for
Asia Pacific Clean Tech Handbook 317 of 348 26-Apr-10 the treatment of nitrogen oxides, and internal desulphurization systems for boilers. The Solid Waste Processing segment is engaged in the investment, construction and operation of waste treatment power plants and others. The Others segment is engaged in the design, construction, installment and the provision of after-sales services of treatment systems for power plants, industry and domestic wastewater, as well as residual heat power generation facilities.
Membrane Technology • Nitto Denko <6988.T> Nitto Denko aims to expand the water business alongside its mainstay LCD film division. It has increased its RO membrane capacity by 1.6 times. With further expansion of this plant in due course, the company says it aims to boost sales in its water segment to ¥100bn over the next ten years by strengthening RO-peripheral technologies and the repair/maintenance business.
• Mitsubishi Rayon Co., Ltd <3404.T> is a leader in membrane technology for the wasterwater business
• Toray Industries, Inc. <3402.T> has an Environment and Engineering segment offers functional film and machines, as well as materials for housing, construction and civil works for the wastewater industry.
Engineering Procurement and Construction (EPC) • Kubota Corporation <6326.T> is mainly engaged in the manufacture farm equipment, and producer of pipes, principally ductile iron pipes, and related equipment for water supply and other utilities. In addition, the Company manufactures and sells other items, such as engines, construction machinery, industrial castings, industrial machinery, environmental control plants.
• Tsukishima Kikai Co., Ltd. <6332.T> See Section 6.12
• Suido Kiko Kaisha, Ltd., <6403.Q> mainly engaged in the water treatment business. The Company is engaged in the manufacture, installation and sale of water treatment machinery and equipment. The Company's products include the water treatment process equipment, such as coagulation sedimentation treatment equipment, filtration equipment, chemicals injectors, water treatment chemicals, seawater desalination units, wastewater treatment equipment, measurement equipment and valves; the sewage treatment units for sewage treatment, advanced sewage treatment and agricultural community sewerage treatment, as well as the environment engineering products, such as industrial water and industrial wastewater treatment products and wastewater recycling systems.
6.11.7 South Korea
Market Size & Growth Korea’s water and waste water market is estimated to be worth USD 10 billion and is steadily growing, according to the Korean MOE. In 2009, the government spent an estimated USD 2.1 billion on water management projects. This accounts for 60% of the entire environmental market, which is assessed at about USD 3.4 billion.
Asia Pacific Clean Tech Handbook 318 of 348 26-Apr-10 Companies and local communities operate the sewage services, including wastewater reclamation-and-reuse systems, drainage facilities, and sewage processing plants. Currently, there are 403 municipal sewage treatment factories nationwide, and the Korean government constructs over 30 new sewage treatment plants every year.
Drivers & Constraints The Korean government improved environmental regulations and in the process upgradied existing sewage treatment plants to install tertiary processes such as activated carbon filtering and advanced disinfection processes. For these purposes, the Korean government allocated a budget of USD 1.2 billion in 2008.
Market Players & Competition • Samyang Water and Sewage
• Hyosung Ebara
Biogas • Scandinavian Biogas is investing about 10 million euros ($13.8 million) to upgrade a wastewater treatment plant in Ulsan and will soon start accepting food and other waste for processing into biogas
6.11.8 Taiwan
Market Size & Growth During the 1980s, the Taiwan authorities began the planning and construction of municipal water treatment facilities and the Taipei Metropolitan Sewage Treatment System Development Project was initiated to increase Taiwans’s sewage treatment rate from 43% in 2008 to over 60% by 2014.
Drivers & Constraints
Market Players & Competition No companies identified
6.11.9 India
Market Size & Growth It is estimated the total market is worth more than US$1 billion, divided about one-third for water provisioning, one third for municipal water treatment and one-third for industrial water treatment.
Drivers & Constraints The key pieces of legislation driving India’s wastewater treatment markets are:
• Water (Prevention and Control of Pollution) Act, 1974, • Water (Prevention and Control of Pollution) Cess Act, 1977, and • Environment (Protection) Act, 1986
Asia Pacific Clean Tech Handbook 319 of 348 26-Apr-10 The Indian water treatment equipment industry is reasonably well established and cost- competitive. Locally fabricated equipment is about 30% cheaper than imported equivalents, but Indian firms have limited capabilities in designing technologies for larger scale water treatment plants. The water treatment market is moving from chemical treatment and demineralization technologies to greater use of membrane technology.
Market Players & Competition • Jain Irrigation
6.11.10 Singapore
Market Size & Growth Due to Singapore’s limited market size, Singapore serves as a testbed for the region and is the regional headquarters for a number of wastewater companies.
Drivers & Constraints The Singapore Government committed US$219 million over five years to promote R&D to sustain the Republic’s competitive edge in the global market, and to position Singapore as an R&D base for environment and water solutions.
Singapore is home to over 50 water companies including major international players like GE Water, Siemens Water, Nitto Denko, and Black &Veatch. Homegrown firms such as Hyflux, Keppel and SemCorp have also set up water treatment plants in many overseas markets including China and the Middle East. With the development of major national water projects such as NEWater (recycled water), the Deep Tunnel Sewerage System (DTSS), desalination and rainfall storage like the Marina Barrage, Singapore is becoming increasingly independent when it comes to water. The aim of the Singapore Government is to increase value-added contribution from the water sector from US$0.3 billion (0.3% of GDP) in 2003 to US$1.1 billion (0.6% of GDP) by 2015.
Market Players & Competition • Hyflux
Asia Pacific Clean Tech Handbook 320 of 348 26-Apr-10 • Sinomem Technology Limited
6.11.11 Indonesia
Market Size & Growth There is an estimate 55% coverage of wastewater in Indonesia, with no clear government policy to increase this coverage.49
Drivers & Constraints The key pieces of legislation driving Indonesia’s wastewater treatment markets are:
49 Domestic Wastewater Services and Facilities in Indonesia: Policy and Regulation Role, Dwina Roosmini and Suphia Rahmawati
Asia Pacific Clean Tech Handbook 321 of 348 26-Apr-10 • Law 32 in 2004, devolves the responsibility of the domestic wastewater management to the local government at provincial level as well as city level. • Development of Institutional Based Water Supply and Environmental Sanitation (2004), by National Development Board • National Action Plan in Wastewater (2003), by Ministry of Public Work
Market Players & Competition Japan, China and Korea dominate the machinery and equipment market. Local companies control the construction services market.
6.11.12 Malaysia
Market Size & Growth Malaysian imports of water and wastewater equipment in 2005 were around U.S. $878 million, an increase of 7% compared to 2004. In 2005, the U.S. had the second largest market share of 20% and its primary foreign competitor is Japan with a market share of 31%. A significant major emerging competitor is China that has a 19% market share.
Over U.S. $395 million has been allocated for improvement of the sewage systems in the country. Indah Water Konsortium (a wholly-owned company of the Ministry of Finance Inc.) is responsible for providing technical expertise and project management to projects that cover refurbishment of existing public sewerage treatment plants, public sewerage pipes network, pumping stations, and central sludge facilities throughout the country.
Drivers & Constraints The key pieces of legislation driving Malaysia’s wastewater treatment markets is the Sewerage Services Act 1993
Market Players & Competition • Gamuda
6.11.13 Philippines
Market Size & Growth The Philippine market for water and wastewater treatment products and equipment is projected to grow 10-15% per year over the next three years, from about $73million in 200450.
50 US Commercial Service, Wasterwater Market in the Philippines
Asia Pacific Clean Tech Handbook 322 of 348 26-Apr-10 Drivers & Constraints The Clean Water Act was enacted in 2004, with Implementing Rules and Regulations issued in May 2005. Provisions of Clean Water Act that will open commercial opportunities include:
• Preparation of a National Program on Sewerage and Septage Management
• Mandatory connection to sewerage systems of all subdivisions, condominiums, commercial centers, hotels, sports and recreational facilities, hospitals, market places, public buildings and other similar establishments within five years following the enactment of the law
• Wastewater Charge covering all sources of wastewater discharges, including effluent from wastewater treatment plants, sewage treatment plants and discharges from water treatment facilities
• Discharge Permits that will be required from owners or operators of facilities that discharge regulated effluents. As part of the permitting procedure, DENR encourages the adoption of waste minimization and water treatment technologies when such technologies are deemed cost effective.
• Creation of the National Water Quality Management Fund and Area Water Quality Management Fund. The funds can be used to purchase equipment for water quality monitoring, reporting or management.
• Fiscal and non-fiscal incentives to industrial wastewater treatment projects and/or adoption of water pollution control technology, cleaner production and waste minimization.
Market Players & Competition • Metropolitan Waterworks and Sewerage System (MWSS) has jurisdiction, supervision and control over the waterworks and sewerage systems in Metro Manila and nearby cities.
• Manila Water Company (MWC) is responsible for the design and construction of North and South Septage Treatment Plants and Facilities in Quezon City and Taguig City. These projects are part of the International Bank for Reconstruction and Development/International Development Assistance’s (IBRD/IDA) $64 million Manila Third Sewerage Project.
6.11.14 Thailand
Market Size & Growth The current total market size for wastewater treatment is estimated at about $1.533 billion USD, with an average growth rate of about 10% per year (government sector $613 million USD, private sector $920 million USD). In general, construction and engineering services costs are 85% of the project with the remaining 15% for equipment. Thus, the market for wastewater treatment equipment is about $230 million USD. The wastewater treatment market is expected to continue growing by an average of 10% for the next few years due to improved economic performances from the real estate, industrial and agriculture sectors. The growth will be enhanced by the
Asia Pacific Clean Tech Handbook 323 of 348 26-Apr-10 government initiative to build the 3 largest water treatment plants in Bangkok and 15 medium plants in other provinces.
The majority of the equipment used by the water and wastewater treatment sector is sourced from Japan, Europe, ASEAN, the U.S. and China. Total imports of water and wastewater treatment equipment in 2007 were an estimated $161 million USD. Japan had the largest market share of 30.9%, followed by Europe (18.5%), ASEAN (10.6%), the U.S. (10.2%), China (14.4%), and other (15.4%).
Wastewater treatment in Thailand is divided into two areas:
The government sector had provided a budget of about $2.6 million USD for 95 wastewater treatment projects in Thailand for the last few years (7 projects in Bangkok with budget of $633 million, 1 project in Samutprakarn province with budget of $333 and 87 projects in other provinces of $1.634 billion) The Bangkok Metropolitan Administrative (BMA), which looks after the Bangkok capital, has three new projects to finish with in the next few years. The projects are in Bangsue, Klongtoey,and Thonburi areas.
The Pollution Control Department of the Ministry of Natural Resource and Environment is supervising and allocating the budget of $1.6 billion for 87 wastewater treatment projects in other municipal areas. Presently, 75 projects were finished. Only 12 projects are under construction. According to the Pollution Control Department, Thai government will provide a budget of $37 million for 3 new municipal wastewater treatment projects in 2008.
The market size for the private sector is about $920 million USD. Growth is driven by economic performance and booming direct foreign investment, especially in export-oriented industries.
Drivers & Constraints Under the “Enhancement and Conservation of National Environmental Quality Act 1992”, the Pollution Control Department (PCD), the Office of Natural Resources and Environmental Policy and Planning (ONEP) and the Department of Environmental Quality Promotion (DEQP) under the Ministry of Natural Resources and Environment (MONRE) are responsible for wastewater management by undertaking national and regional water quality management policy and planning, raising public awareness concerning water conservation and facilitating local authorities for their responsibilities of their own wastewater management.
Market Players & Competition 6.11.15 Australia
Market Size & Growth Australia spends an estimated USD4.2 billion on the water and wastewater treatment sector. Direct purchases of capital equipment accounts for 30% of total spending.
Drivers & Constraints Total annual capital expenditure by the Australian water utilities has nearly tripled over the past three years. Driven by a government-led program, total water and sewerage capital expenditure is projected by the Construction Forecasting Council to increase a further 60% over the next nine
Asia Pacific Clean Tech Handbook 324 of 348 26-Apr-10 years. Southern Australia clearly has more of a problem with its water resource than with its network; hence the construction of desalination and recycling plants is absorbing the bulk of the capital expenditure.
Market Players & Competition Water and wastewater treatment plants are operated by the regional government, such as Sydney Waster and Melbourne Water
• Sydney Water aims to increase water recycling to 12% by 2015 and increase desalination plants for NSW
• Melbourne Water Melbourne produces approximately 330,000 million litres of sewage a year and Melbourne Water is responsible for the wastewater treatment
6.11.16 New Zealand
Market Size & Growth • Approximately 1.5 billion litres of domestic wastewater is discharged into the environment daily51.
Drivers & Constraints The key pieces of legislation driving New Zealand’s wastewater treatment markets are:
• The New Zealand Waste Strategy includes a target requiring all substandard wastewater treatment plants to be upgraded, closed or replaced by December 2020.
• The Ministry for the Environment partners with Water New Zealand to develop initiatives which improve the country's environmental performance in the area of wastewater.
Market Players & Competition New Zealand opened a wastewater algae to bio-crude oil demonstration project in 2009. The project uses NIWA’s scientific expertise on advanced wastewater treatment and algal production pond technology with Solray’s bio-crude oil conversion technology and is hosted by Christchurch City Council at the Christchurch Wastewater Treatment Plant.
51 Ministry of the Environment
Asia Pacific Clean Tech Handbook 325 of 348 26-Apr-10 6.11.17 Summary of Companies Code Company Name Market Cap PE Country Segment (M Dollars) Ratio
Pan Asia Environmental Machinery & 0556.HK Protection Group Ltd $162.9 35.2 Hong Kong Engineering
Machinery & 6361.T EBARA CORP $2,168.2 N/A Japan Engineering
Machinery & 6370.T Kurita Water Industries Ltd $3,633.7 19.7 Japan Engineering
TSURUMI MANUFACTURING CO Machinery & 6351.T LTD $182.8 26.6 Japan Engineering
China Boqi Environmental Solutions Technology Energy Equipment & 1412.T (Holding) Co Ltd $81.4 N/A China Services
Misc. Materials & 6988.T NITTO DENKO CORP $6,871.8 15.0 Japan Commodities
6326.T KUBOTA CORP $11,695.4 32.1 Japan Metals - Steel
Machinery & 6403.Q SUIDO KIKO KAISHA LTD $36.9 N/A Japan Engineering
Misc. Materials & JAIR.BO Jain Irrigation Systems Ltd $1,650.1 43.8 India Commodities
Business & Public HYFL.SI Hyflux Ltd $1,324.2 70.7 Singapore Services Source : Thomson Reuters
6.12 Waste 6.12.1 Background This section will focus primarily on Municipal Solid Waste Incineration (MSWI) and Landfill Gas (LFG) to generate power. Incineration, in the form of Waste-to-Energy (WTE) is making a comeback, as costs for landfilling and power generation increase, outweighs the potential environmental risks of releasing contaminants into the air. This is particularly relevant in Northern Asia (China, Japan, Korea and Taiwan), as urbanization combines the increase in Municipal Waste with the lack of space for disposal. MSWI has not been adopted in India and SE Asia, as both economics and climate do not favour incineration over other alternatives.
Other options include introducing MSW into the wastewater stream to produce biogas, which is covered in Section 6.11.
6.12.2 Targets & Incentives • China - The Ministry of Construction aims to raise the share of China’s incinerated MSW from around 1% in 2002 to 30% by 2030. There are currently only 19 MSWI in China
Asia Pacific Clean Tech Handbook 326 of 348 26-Apr-10 • Japan has over a 70% rate of incineration of MSW and has the highest rate of major economies (excluding Singapore) and has over 1,700 MSWI in operation.
• South Korea is renewing its policy towards WTE projects and is in the process of setting up “Energy and Environment towns” to increase incineration rate to 77% by 2013.
• Taiwan has 21 MSWI in operation and processes around 7.7 milion tonners per year.
• India does not focus on MSWI, due to high cost and suitability of Indian MSW for incineration.
• Singapore has the highest rate of incineration in APR, incinerating 90% of its MSW.
• South East Asia has not embraced MSWI due to high cost and suitability of MSW for incineration
• New Zealand does not have any MSWI, due to issues with environemtal concerns on release of airbourne contaminants
Total MSWI and capacity Country Number of Capacity Number of Proposed Proposed MSWI MSWI in (MW) Capacity
operation
China 19 Japan 1717 1060MW
South Korea
Taiwan 21
India Singapore 4 234MW
Indonesia
Malaysia
Philippines 0 0 0 0
Thailand 3
Australia
New Zealand 0 0 0 0
Source: Government Publication and Estimates
Asia Pacific Clean Tech Handbook 327 of 348 26-Apr-10 6.12.3 Waste Process Figure 6.28 – Waste Disposal
Waste Source Disposal Bi-product End
MSW Collection Landfill Landfill Gas Heat and
Industrial Leachate Wastewater
Pre Process Grate Incineration Heat and
Pyrolysis
Hazardous Fluidised Bed Ash Landfill
Medical Rotary Kiln Syngas
Pyrolysis Oil
Incinerators The incineration of rubbish has evolved in a number of different ways for different needs over the past hundred years. Mass burn grate incinerators dominate the US and European markets for WTE plants. However, they are not well suited to either smaller plants or the low-heat/high- moisture rubbish found across most developing countries. Pyrolitic and fluidised bed incinerators have moved in to fill up the gap. Pricey, but more efficient, rotary kiln furnaces are used to treat hazardous and medical waste. The heat produced by an incinerator can be used to generate steam, which is either used directly for heat or to drive a turbine to produce electricity.
• Grate incinerator technology. Grate incinerators dominate the Waste to Energy market in most developed markets. They are suitable for burning MSW and industrial waste. Examples of this technology are the “Martin grate” and “Dusseldorf grate”. A modification of this technology is the Danish “Volund incineration” method where an additional rotary furnace is added to the grate. Grate incinerators are the easiest type to scale, and new installations in the US and Europe average up to 3,000 tonnes per day. When energy content falls below 6,000 kJ/kg, grate incinerators require additional fuel – either coal or oil, to keep the fire going. This limits their usefulness in APR, where the moisture is higher than European and US markets.
• Pyrolytic incinerator technology. Pyrolytic incinerators are favoured in developing APR, as they do not require extra fuel except for ignition. They can be applied in both medical and municipal waste areas. Waste remains in the pyrolytic incinerator for an extended period of
Asia Pacific Clean Tech Handbook 328 of 348 26-Apr-10 time to ensure full combustion. It controls burning in a static status devoid of oxygen and reduces slag and fume discharge. The application of pyrolysis to waste management has steadily gained acceptance along with other advanced waste-treatment technologies. Pyrolysis can also be used as a form of thermal treatment to reduce waste volumes and produce fuels in gaseous form (syngas), liquid form (pyrolysis oil) and ash. The gases are burnt to produce heat, which is normally then used to make electricity. The ash is reused as building material or sent to landfills. No extra heat or fuel source is required except for starting the process. These systems are not as robust as grate incinerators for raw solid waste and work better if the waste is pre-processed.
• Fluidised bed combustion. With this method of incineration, the grate is replaced by a bed of limestone or sand. It is used by many Japanese combustion systems with small daily capacities. China has also vigorously pursued this technology, with a local variety developed by the Academy of Sciences and Zhejiang University. Fluidised bed combustion has proven more suitable for the treatment of high moisture content of Chinese MSW, than foreign developed technologies. It is more convenient to add auxiliary fuels such as coal or oil to fluidised bed reactors, making them more amenable to the low-heat value of China’s waste. They are also better suited to moist (organic) waste than grate incinerators.
• Rotary kiln incinerator technology. This is the most common choice for medical and solid hazardous waste, particularly in APR. Chinese law mandates that most solid hazardous waste be disposed of in rotary kiln incinerators. The waste is burnt in a rotating oven. It features mechanical feeding, temperature controlled ignition, a high level of automation and easy operation. Both global and domestic Chinese producers include advanced fume processing equipment including fast-cool semi-dry acid separator, activated carbon powder blowers, dust collection bags (to prevent secondary air pollution) and sludge drains.
Landfill Gas Previously, Landfill Gas was seen as a pollutant and flared on site. In recent years, there has been a move to convert this gas either into Natural Gas (through purification) or convert it to energy.
6.12.4 China
Market Size & Growth Total quantities of Municipal Solid Waste (MSW), Industrial Solid Waste (ISW), and Hazardous Waste (HW) in 2002 were 136.5 million tons, 945 million tons, and 10 million tons, respectively. In 2002, the quantity of MSW disposed of was 74.04 million tons, 89.30% of which was landfilled, 3.72% was incinerated, and 6.98% was composted. There are currently 651 disposal facilities for MSW in China.
Asia Pacific Clean Tech Handbook 329 of 348 26-Apr-10 The number of MSW landfill sites (2000 to 2007) Year 2000 2001 2002 2003 2004 2005 2006 2007
Landfill sites 484 571 528 457 444 365 324 366
landfill quantity(million 64.2 78.4 74.04 72.55 78.48 81.08 78.73 94.38 tons)
Source: China Urban Construction Design & Research Institute
Incinerators China currently operates 19 municipal waste incinerators (MWI) with a total daily capacity of approximately 7,000 tons (December 2002). This is about 2% of all the MSW being produced in China. Most of these systems are grate technology.
Landfill Gas Number Province Project Name Generator Other Start up /City (kW) year 1 Zhejiang Tianziling 1940 1998 Landfill-Site Hangzhou City 2 Guangdong Datianshan 3000 1999 Landfill-Site Gaungzhou 3 Jiangsu Shuige Landfill- 2520 2002 Site Nanjing City 4 Shandong Xiaojianxi 500 m3/h Only Flare 2003 Landfill-site Qingdao City 5 Shanxi Jiangcungou 3900 2003 Landfill-Ste Xian City 6 Anhui Maanshan City 200 m3/h Flare And To 2004 Landfill Site Incinerate Hospital Waste 7 Jiangsu Taohuashan 1940 2004 Landfill-Site Wuxi City 8 Beijing Ashuwei Landfill- 2700 Flare Only In 2004/2007 Site 2004 9 Beijing Beishengshu 1000 2004 Landfill-Site 10 Guangdong Xingfeng 2000 2004 Landfill-Site Guangzhou City 11 Hunan Qiaoyi Landfill 2100 2005 Changsha City 12 Hubei Erfeishan 1200 2005 Landfill-Site
Asia Pacific Clean Tech Handbook 330 of 348 26-Apr-10 13 Beijing Anding Landfill 750 m3/h To Evaporate 2005 Leachate 14 Jiangsu Tianjinwa 1030 2005 14 Landfill-Site Nanjing City 15 Shandong Weihai City 800 m3/h Only Flare Landfill-Site 16 Shandong Jinan Landfill- 1400 2006 Site Jinan City 17 Liaoning Yangeryue 500 m3/h To Truck Fuel 2007 Landfill-Site Anshan City 18 Guangdong Shenzhen 3500 Also to Truck 2007 Xiaping Landfill- Fuel Site Shenzhen City 19 Anhui Liuan City 200 m3/h Only Flare 2007 Landfill-Site 20 Jiangsu Huaian City 200 m3/h Only Flare 2007 Landfill-Site 21 Beijing Liulitun Landfill- 800 m3/h Only Flare 2007 Site 22 Beijing Gaoantun 1500 m3/h Flare 2007 Landfill-site 23 Zhejiang Ningbo Landfill- 200 m3/h Only Flare 2007 Site 24 Jiangxi Maiyuan Landfill- 4500 2008 Site Nanchang City 25 Fujian Hongmiaoling 2000 2008 Landfill Fuzhou City 26 Tianjin Shuangkou 1380 2008 Landfill- siteTianjin City 27 Liaoning Laohuchong 2000 2008 Shenyang City 28 Shanghai Laogang 2500 2008 Landfill-Cite Source: China Urban Construction Design & Research Institute
Drivers & Constraints According to the Standard for Pollution Control on the Landfill Site of MSW (GB16889-2008), the LFG recovery facilities and flare should be installed when the landfill design capacity are more than 2.5 millions ton and the landfill body depth are more than 20 metres ,and for small scale landfill the flare or measures to reduce methane emissions should be also used.
Asia Pacific Clean Tech Handbook 331 of 348 26-Apr-10 Incinerators China has incinerators in cities like Shenzhen and Leshan. The Shenzhen incinerator was purchased second-hand from Hong Kong, which decided it could not be retrofitted to meet anti- pollution standards. However, it has also proven too expensive for Shenzhen to run. Nevertheless, Beihai, Shenyang, Guangzhou, Beijing and Shanghai have all begun constructing pilot plants with foreign assistance. Although the MSW is still not that suitable for incineration, it is quickly improving, and engineers want to gain operational knowledge for the future.
Landfill Gas Regarding biogas generation from MSW the authorities will give a high priority to landfill gas recovery CDM projects, especially for landfills closing soon, and which will produce high gas yields, before there is large scale recycling to remove the landfill gas creating organic materials. Their aim is to follow the success in many industrialised countries which routinely utilize the energy from landfill gas. Energy from waste schemes form part of the 2020 overall biomass electrification target of 30 GW.
Market Players & Competition • Zhong Hui
• Eguard Resources Development <000826.SS> Eguard Resources Development, a Chinese company established in 1993, invests in and develops urban water supply and wastewater treatment. It is also involved in the design, construction and integration of solid- waste treatment equipment, as well as the provision of related technical services. The company's major businesses include civil waste water-treatment, tapwater supply, solid-waste treatment and the provision of related technology services, as well as solid-waste-treatment system and equipment integration. The company is headquartered in Yichang, Hubei Province, China. As of end-2006, it had five major subsidiaries/associates.
• Shenzhen Dongjiang Environmental <8230.HK> Shenzhen Dongjiang Environmental is engaged in the processing and sale of recycled products, the provision of waste-treatment services, the trading of chemical products, the construction of environmental-protection systems and consultancy. Its recycled products and waste-treatment services segment produces and sells recycled products, and provides waste-collection and treatment services. The environmental-protection systems segment engages in construction contract work as a main contractor or subcontractor, primarily in respect to environmental-protection systems. In
Asia Pacific Clean Tech Handbook 332 of 348 26-Apr-10 addition to the consultancy segment, the trading segment handles sales of chemical products. Last year, it acquired a 40.2% interest in Shenzhen Huizhou Dongjiang Environmental Technologies.
6.12.5 Japan
Market Size & Growth According to the Japan MOE 2004 Report, the remaining capacity of the final disposal sites is 152.61 million m3 and the remaining life time is less than 6 years.
Incineration There are 1717 combustion plants in Japan of total capacity of 193,000 tons per day; of these, 1130 plants (64.2%) are Waste-to-Energy (WTE) plants and 215 plants (12.5%) generate a total of 1060 MW. Approximately 75 % of the gross amount of MSW that Japan generates annually is incinerated providing an estimated 2.5 million kW of electricity with an aimed 4 million kW is expected for generation in 2010.
Landfill Gas In 2002, the volume of landfilled MSW and industrial wastes are 9 million metric tons and 40 million metric tons, respectively. Methane emission source is organic wastes composed of food waste, paper waste, waste textile and woodchip. The volume of methane emission from landfill sites is 3.7 million metric tons (CO2 equivalent) in 2002.
Drivers & Constraints In order to tackle the challenges normally encountered by waste generation in Japan, “integrated waste management” the 3Rs method (Reduce, Reuse, and Recycle) is employed as the best and most preferable ways to address solid waste and the treatment of waste is usually performed based on the "Waste Disposal and Public Cleansing Law."(MOE, 2008).
LFG recovery is not common in Japan, because organic wastes are usually reduced through mid- disposal such as incineration.
Market Players & Competition • Hitachi Zosen <7004.T> Hitachi Zosen is a Japan-based manufacturer engaged in four business segments. The environment and plant segment produces refuse-incineration plants, industrial-waste-treatment plants, biomass-energy systems, water and sludge-treatment plants and others. The machinery and processing machinery segment supplies iron-making, forging, wind-driven, food processing, pharmaceutical, plastic-processing, and precision machines, and power-generating units. The steel and construction segment supplies bridges, doors for water gates, steel chimneys, steel pipes, marine engineering equipment, shield machines and civil-engineering equipment. The others segment provides electronic and control, high-accuracy-positioning and disaster-prevention systems, and is engaged in the wholesale of electric power. Headquartered in Osaka, the company has 83 subsidiaries and 15 associated companies. For a detailed company profile, see Appendix A.
Asia Pacific Clean Tech Handbook 333 of 348 26-Apr-10 • Tsukishima Kikai <6332.T> Tsukishima Kikai is a Japan-based plant engineering company. Along with its subsidiaries and associated companies, the company has two business segments. The water environment segment is engaged in the operation, management and repair of singular machinery such as water-filter plants, sewerage-treatment plants, spinning dryers, dryers and incinerators, as well as water-filter and sewage-treatment facilities. Its industrial segment is engaged in the general- and industrial-waste treatment for singular machinery, such as food-manufacturing plants, chemical plants, biomassethanol plants, vacuum-technology-applied plants, dryers, separators, and gas holders, as well as liquid- waste-disposal facilities and solid-waste-disposal facilities, among others. Headquartered in Tokyo, Tsukishima Kikai has 12 subsidiaries and two associated companies. For a detailed company profile, see Appendix A.
• Takuma <6013.T> is a Japan-based manufacturing company. The Company has four business segments. The Domestic Environment Energy segment is engaged in the design, construction, sale, operation and maintenance of general waste treatment plants, resource recovery plants, sewage disposal plants, sludge incineration plants, biomass electric generation plants and generation gas turbine systems. This segment is also involved in the waste treatment business. The Overseas Environment and Energy segment provides waste power generation plants and biomass power generation plants. The Civilian Heat Energy segment offers miniature through-flow boilers and vacuum hot-water supply heaters. The Others segment is involved in the sale and maintenance of impregnating equipment, air conditioning facilities and facilities for semiconductor industry.
Asia Pacific Clean Tech Handbook 334 of 348 26-Apr-10 6.12.6 South Korea
Market Size & Growth In October 2008, as a part of the method to achieve the national vision of "Low Carbon, Green Growth," the ministry of environment announced "Waste Resources and Biomass Energy Utilization Initiatives", and has strived to establish a wide range of measures with the publication of the implemented road map in July 2009. As part of the plan it proposes to increase energy collection rates to 77% of residual thermal energy from incinerators and 91% of landfill gas from waste landfill sites by 2013.
Incineration As of 2007, the amounts of combustible wastes and organic wastes accounted for about 3.84 million tons and 7.85 million tons per year, respectively. However, only 1.5% (58,000 tons/year) of combustible waste, and 2% (160,000 tons/year) of organic waste were utilized as energy resources. In an effort to facilitate waste to energy policy, the ministry aims to achieve energy utilization of combustible waste (by 47% or 1.82 million tons/year) and of organic waste (by 26% or 2.04 million tons/year) by 2013.
Landfill Gas There are 238 landfill sites in operation, with 17 LFG projects installed in Korea, generating capacity of just over 80 MW.
Drivers & Constraints The Government is in the process of improving its Waste to Energy Legislation, in an effort to increase the contribution of Waste to Energy projects.
In addition, with the ban of ocean dumping of organic waste starting 2012, the MOE as part of its sewage sludge to energy strategy plans to expand the provisions regarding the use and method of waste utilization in the Waste Control Act, so as to allow coal power plants to use sewage sludge as fuel.
The MOE is conductinga feasibility study in the establishment of 6 “Environmental and Energy towns” in: Gangwon & North Chungcheong province (Wonju), Jeju province (Jeju Special Self- Governing Province), Daejeon & South Chungcheong province (Daejeon), Daegu & North Gyeongsang province (Daegu), and Gwangju & North Jeolla province (Gwangju).
Market Players & Competition • Insun Environmental New Technology Co. < Unlisted> is a Korea-based company engaged in environmental engineering. Its technologies prevent the dilapidation of natural land and promote the conservation of natural resources by regenerating construction waste and removing pollution sources. The Company's principal activities include intermediate treatment of construction waste, reclamation and incineration of waste, as well as the demolition of scaffoldings and structures. It also produces regenerated aggregates from treated construction waste.
Asia Pacific Clean Tech Handbook 335 of 348 26-Apr-10 • Daewoo Engineering & Construction. Hitachi Zosen Corporation worked with Daewoo for the construction of a stoker-type incinerator (2 furnaces at 100 tons per day totaling 200 tons per day) for Ikusan City in Korea.
• Korea Power Engineering Company, Inc. (KOPEC) and SCS Engineers (SCS) constructed a 50MW LFG project at the Sudokwon Landfill
6.12.7 Taiwan
Market Size & Growth
Incineration There are 21 municipal solid waste incinerators (MSWI) with a total yearly treatment capacity of 7.72 million tons in service in Taiwan.
Landfill Gas Taiwan disposes of 35,379 tonnes of MSW daily in local landfills.
Drivers & Constraints Since 1990, the Environmental Protection Administration (EPA) created a series of MSWI construction projects to build one incinerator for each city or county to address the waste problems in Taiwan.
Market Players & Competition • China Ecotek <1535.TW> China Ecotek, headquartered in Taiwan, is engaged in environment-protection and mechanical-engineering projects, while also operating recycling factories and machinery maintenance. The company's businesses also include biochemical medicine plant construction projects, power-plant installation and maintenance projects. Last year, mechanical-engineering projects accounted for 48% of total revenue, followed by recycling factories and machinery maintenance (29%) and environment-protection projects (20%). The company distributes its products to southern, central, northern and eastern Taiwan. As of end-2006, the company had three wholly-owned subsidiaries, including CEC International and CEC Development.
• SINO Environmental Services Corp
• Onyx Ta-Ho Environmental Services Co., Ltd
Asia Pacific Clean Tech Handbook 336 of 348 26-Apr-10 collection and recycling, waste transfer, liquid industrial waste treatment, fly ash treatment, drainage cleaning and MARPOL oil treatment.
• Taiwan Sugar Corp
6.12.8 India
Market Size & Growth In India, most MSW are still disposed of in open sites, with little management or prospects for incineration or LFG. There are a number of pilot projects
• Vijayawada, launched a WTE plant to generate electricity from MSW. This was the first plant in the country to be set up with financial assistance from the United Nations Development Programme (UNDP) and the MNES. The capacity o the power plant is 6 MW and is aimed to process 500 MT of MSW per day.
• The cities of Hyderabad and Secundrabad producing around 2200 MT of waste every day Setup a WTE plant in 1999 based on the RDF Technology (IPE, 2006). Located next to the Ganghamguda municipal land dump (20 acres), which receives 1300 MT of garbage every day from Hyderabad city. It was set up by the Andhra Pradesh Technology Development & Promotion Centre (APTDC) and Selco International Ltd.
Incineration Due to the high capital cost for MSWI, there is not a policy in place to use incinerators in India. In addition, it is thought that Indian MSW is not suitable for Incineration.
Landfill Gas There are a number of CDM projects using LFG gas to generate carbon credits in India.
Drivers & Constraints The key pieces of legislation driving India’s Waste Management markets are:
• Municipal Solid Waste (MSW) Management Rules 2000, which came into effect from January 2004 • In addition, there are Municipal Corporation Acts by different states such as the Delhi Municipal Corporation Act 1959, Uttar PradeshMunicipal Corporation Act 1959 and Karnataka Municipal Corporation Act 1976.
Market Players & Competition • Selco International Ltd
Asia Pacific Clean Tech Handbook 337 of 348 26-Apr-10 6.12.9 Singapore
Market Size & Growth
Incineration Singapore incinerates 90% of its Municipal Solid Waste through 4 incineration plants and generates roughly 980 kWh of energy, supplying roughly 2% of Singapore’s electricity demand.
Plant Capacity Comment Ulu Pandan 16MW Closed in August 2009 Senoko 56MW Acquired by Keppel Tuas 46MW Tuas South 132MW Total 234MW Source: Waste Management Department, NEA
Drivers & Constraints The key pieces of legislation driving Singapore’s Waste Management markets are:
• The law on waste is contained in the Environmental Public Health Act (EPHA) and its subsidiary laws, including the regulations relating to General Waste Collection and Toxic Industrial Waste.
Market Players & Competition • Keppel Seghers
• Sembcorp Environment Pte. Ltd.
6.12.10 Indonesia
Market Size & Growth Surabaya, Indonesia has an imported incinerator that can only operate at two-thirds of its designed capacity, because the waste needs to be dried onsite for five days so it will burn. Even without air pollution control mechanisms, the cost of incinerating the waste in this instance is roughly ten times greater than the cost of sanitary landfilling in other Indonesian cities. In addition, there are a number of new Waste to Energy projects that are funded by CDM credits.
Asia Pacific Clean Tech Handbook 338 of 348 26-Apr-10 Waste to Energy Projects • PT. Bioenergi Surya Persada & YCBI, Malang: MSW to Energy 17,000 T/Year
• PT. Bioenergi Surya Persada & YCBI, Surabaya: MSW to Energy 30,000 T/Year
• PT. Navigat Organik Energi Indonesia, Bali: MSW to Energy 2 x 10 MW:500,000 T/Year
Drivers & Constraints National Regulation regarding to Municipal Waste Management has not been set up
Market Players & Competition • Navigat Organic Energi Indonesia
• PT Asia Biogas Indonesia is a subsidiary of Asia BioGas Company, the largest biogas systems developer and operator in SE Asia.
6.12.11 Malaysia
Market Size & Growth Disposal of solid waste is done almost solely through landfill method. There are about 177 disposal sites in Peninsular Malaysia. In most cases, open dumping is being practised and takes place at about 50% of the total landfills.
Incineration The government had also spent RM17million to purchase 7 mini-incinerators with a capacity of 5 to 20 ton/day to be operated in the resort islands in Langkawi, Labuan, Tioman and Pangkor.
Landfill Gas
Drivers & Constraints The key pieces of legislation driving Malaysia’s Waste Management market is the Solid Waste and Public Cleansing Management Bill 2007.
Market Players & Competition • CMTS Van Sommeren International
Asia Pacific Clean Tech Handbook 339 of 348 26-Apr-10 6.12.12 Philippines
Market Size & Growth
Incineration There are no MSWI in the Philippines
Landfill Gas There are around 15 LFG projects in the Philippines.
Drivers & Constraints The Philippines has banned incineration, as part of the Clean Air Act, which has put restrictions on incineration. Landfill Gas Projects have been driven by CDM credits, with a number of projects approved in the Philippines.
Market Players & Competition • Philippine Bio Sciences Company, Inc. (PhilBIO)
• Reclaim Resources Limited
6.12.13 Thailand
Market Size & Growth MSW in Thailand has increased steadily during the last decade. About 38,000 ton/day of refuse was collected across the country in 2002.
In 2004 there were 425 disposal sites (95 landfills; 330 open dumps) in Thailand and an estimated methane emission of 115.4 Gg/year was generated based on this practice. It has been estimated that the anticipated methane emission in Thailand will rise from 115.4 Gg/year to 118.5 Gg/year if the largest open dumpsites in provinces with no existing landfill are upgraded to sanitary landfill; and it will increase to 193.5 Gg/year if the existing sanitary landfill is upgraded to integrated waste management facilities.
Incineration There are currently only 3 MSWI in Thailand.
Landfill Gas There are about 10 potential LFG projects in Thailand, with a potential of 18MW in power generation capacity, The largest two projects are Kampangsean and Ratchathewa Landfills.
Asia Pacific Clean Tech Handbook 340 of 348 26-Apr-10 Drivers & Constraints MSW Management falls under the local municipal government.The key pieces of legislation driving Thailand’s Waste Management markets are:
• Public Health Act. B.E.2535 (1992)
• Enhancement and Conservation of National Environmental Quality Act. B.E.2535 (1992)
• Municipality Act. B.E.2496 (1953)
Market Players & Competition • CleanTHAI
6.12.14 Australia
Market Size & Growth
Incineration
Landfill Gas There are 37 LFG power generation projects (around 9 % of total renewable energy generators), with a combined capacity of approximately 105 MW. In 2001/2002, LFG projects contributed 416 gigawatt hours (GWh) of electricity generation.
The largest operational LFG installation at 13 MW capacity, is the Energy Developments Limited
Drivers & Constraints The key pieces of legislation driving Australia’s Waste Management markets are:
• The Health Act 1911 is the primary Act dealing with all matters relating to public health, includes many aspects of municipal waste management.
• There are additional State legislation, such as Western Australia’s Waste Avoidance and Resource Recovery (WARR) Bill
Market Players & Competition • Energy Developments Limited
Asia Pacific Clean Tech Handbook 341 of 348 26-Apr-10 • Anaeco
6.12.15 New Zealand
Market Size & Growth
Incineration New Zealand does not have any MSW Incinerators.
Landfill Gas There are around 100 landfills in New Zealand, with some LFG to energy projects in operation.
Drivers & Constraints The key piece of legislation driving New Zealand’s Waste Management markets is the Waste Minimisation Act provides a levy on landfill waste, mandatory waste reporting, clarifies the role of territorial authorities with respect to waste minimisation, and sets up a Waste Advisory Board.
Market Players & Competition • Waste Solutions Ltd designs Anaerobic Digestion (AD) facilities for over 30 years.
• Envirowaste was the first operator in New Zealand to generate electricity from methane gas produced by waste in landfills. The landfill gas to energy (LFGTE) plants operated by
Asia Pacific Clean Tech Handbook 342 of 348 26-Apr-10 EnviroWaste at Greenmount and Rosedale landfills in Auckland produce a peak of 10MW of electricity
6.12.16 Summary of Companies Code Company Name Market Cap PE Country Segment (M Dollars) Ratio
Shenzhen Dongjiang Business & Public 8230.HK Environmental Co Ltd $392.0 53.2 China Services
Machinery & 7004.T Hitachi Zosen Corp $1,199.4 8.3 Japan Engineering
TSUKISHIMA KIKAI CO Machinery & 6332.T LTD $310.8 N/A Japan Engineering
Machinery & 1535.TW China Ecotek Corp $160.7 13.8 Taiwan Engineering
Utilities-Electrical & ENE.AX Energy Developments Ltd $348.5 30.8 Australia Gas
ANQ.AX AnaeCo Ltd $33.3 N/A Australia Energy Sources
Unlitsted Zhong Hui N/A N/A China Incineration
Unlisted Keppel Seghers N/A N/A Singapore Waste Handling
Sembcorp Environment Unlisted Pte. Ltd. N/A N/A Singapore Waste Handling
CMTS Van Sommeren Unlisted International N/A N/A Malaysia Incineration
Philippine Bio Sciences Unlisted Company N/A N/A Philippines LFG
Shenzhen Dongjiang Business & Public 8230.HK Environmental Co Ltd $392.0 53.2 China Services
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 343 of 348 26-Apr-10 7 SUMMARY OF KEY OPPORTUNITIES 7.1 Integration of Government Policy and Industry APR economies are suited to Clean Technology, in terms of integrating government policy with industry. Japan, South Korea and China have institutionalized this process by selecting key industrial sectors for the economy and working at building up first the domestic industry, through government incentives and protectionism that will grow and then export and compete on the global markets, through high quality and low cost.
China has already taken the lead in the PV Solar and Wind markets, in the space of 2 to 3 years and is expected to dominate these markets.
This ‘statement of intent’ is further re-enforced by the level of investment, R&D and patent filings that China, Japan, South Korea and Taiwan have filed in key sectors of solar, wind and water sectors to protect it investment.
This is also backed up by aggressive Renewable Energy Targets, Feed in Tariffs and cheap finance to promote the development of a domestic industry, particularly in PV Solar and Wind. Figure 7.1 – Key Sectors
PV Solar S Korea Wind Government Policy lead Water Japan Waste China PV Thin Film Taiwan
India Wave/Tidal
Geothermal
SE Asia Australia CCS Biofuel Laissez - NZ Biomass Faire
Commoditised Differentiated
Asia Pacific Clean Tech Handbook 344 of 348 26-Apr-10 7.2 Infrastructure Most of investment in Clean Technology in Developing countries in APR is focused on large scale infrastructure projects, such as Hydro, Nuclear and Biomass co-generation projects, rather than small scale projects. Unlike the US and Europe, the APR is installing new infrastructure.
These projects will have the largest impact on Renewable Energy Targets, with Hydro (accouting for 14%) and Nuclear (8-9%) the two largest sectors. Wastewater and Waste to Energy and Biomass Projects also fall in this category.
Hydro China Yangtze <600900.SS> and China Power International <2380.HK> are Chinese Utilities that have large exposure to Hydro. China Yangtze operates the Three Gorges Dam, which is the largest Hydro project globally. Other Hydro Utilities include: National Hydroelectirc Power Corporation
Nuclear Japan, China, South Korea and India have embraced Nuclear Power and have all these countries have embarked on ambitious nuclear power programs. South Korea will have the the highest nuclear power contribution to its power generation mix, while China will have the largest capacity by 2030.
Key companies involved in Nuclear power include: China National Nuclear Corporation (CNNC), Korea Nuclear Hydro Power (KNHP), GE Hitachi, Westinghouse Toshiba, Nuclear Power Corporation of India (NPCIL). All companies are unlisted and controlled by government agencies.
Asia Pacific Clean Tech Handbook 345 of 348 26-Apr-10 The only listed companies are Uranium mines in Australia, that include: Paladin
Biomass Biomass and cogeneration is a large contributor to renewable energy targets in China, India and South East Asia and all countries plan to use agricultural waste as feedstock. Key companies in this space include: National Bio Energy Limited in China and All Green energy in India.
7.3 Commoditised Sectors Wind and PV Solar have become commoditised and those countries that have high quality manufacturing and can reduce marginal costs will be those that compete. As with the electronics industry and heavy manufacturing – countries like Japan, Korea and Taiwan will be able to differentiate, through their high level of R&D and high quality manufacturing. China will be the main beneficiary of this commoditization, as it assimilates the technology and builds up its own domestic industry and look to expand globally.
Wind China dominates this sector, around 70 companies set up in China. Leading Chinese Companies include: Xinhjiang Goldwind, Dongfang Electric and China High Speed Transmission. Suzlon is the leading global wind manufacturer in Asia.
PV Solar China, Japan, South Korea and Taiwan dominate the PV Solar sector. There are over 70 companies in China alone and China has a cost advantage over other countries and are leaders in the Cell and Module Manufacturing. Japan and South Korea have concentrate on feedstock,
Asia Pacific Clean Tech Handbook 346 of 348 26-Apr-10 which is hard to manufacture and also focusing on PV thin film. Leading companies include Suntech, Solargiga and Trina Solar in China. Japan has Tokyuyama and Osaka Titanium in the feedstock space and Sharp, Kyocera in cell and module manufacturing.
7.4 Innovation Beyond, Wind, Solar and Biomass, countries such as Australia and New Zealnd lead in new sectors, such as Wave/Tidal, Geothermal and CCS.
Geothermal Japanese companies still dominate the manufacturing of turbines, with companies such as Fuji Electric and MHI. However, the domestic industry is small and most are exported to Philippines and Indonesia.
EDC and Aboitiz in the Philippines are the leading Geothermal Utilities in the region. While Australia leads the way in new ‘Hot Rock” geothermal technology, with around 9 companies listed in the ASX.
Wave/Tidal While still not commercially viable, Australia and New Zealand lead the way in Wave and Tidal technologies in the region. Key companies include Carnegie Wave
Smart Grid China, Japan, South Korea and Australia have set aside substantial investments to set up a smart grid in their respective countries. China alone is expected to invest over $7 billion to upgrade its infrastructure.
CCS Even with aggressive new Renewable Targets, the region is still expected to generate over 70% of its power from fossil fuels by 2030, primarily from coal. CCS is seen as a way to mitigate this impact and most of the CCS projects are expected in APR by 2050.
Australia is the leader in CCS and has 15 projects underway, funded by the Coal Industry and Government Agencies, such as CSIRO. Japan has formed a company called CCS Ltd, which is consortium of utility companies.
7.5 Conclusions The APR will be the largest Energy Market and Clean Technology Market in the world, by 2030. Countries within the APR are already gearing up for the impact of Climate Change by setting aggressive renewable targets. Clean Technology is seen as a growth industry that generates jobs, while reducing carbon emissions and energy security in the process. What is surprising is the speed of change, the emergence of organic innovation and the level of investment set aside by governments to ensure that countries become world leaders in this space.
Asia Pacific Clean Tech Handbook 347 of 348 26-Apr-10 For APR, Clean Technology is simply building new power capacity to keep up with growth. The largest contributors to renewable energy will be Hydro, followed by Nuclear Power. Renewable Energy will only account for 4% of total power generation by 2030.
Even with all these proposed targets, power generated from fossil fuels will still account for over 70% of the power generation mix by 2030. Other mitigation measures, such as energy efficiency will need to be included into projections to reduce the overall energy consumption in the APR.
This Handbook has focused primarily on renewable energy for power generation and focus on energy effiicieny will need to be included in the next version of the Handbook.
Asia Pacific Clean Tech Handbook 348 of 348 26-Apr-10